NZ stocks: Warehouse bounces back but dollar's slide hits leaders

A fall in the kiwi to its lowest point this year led to swings in currency-affected stocks yesterday.

The New Zealand dollar fell about one US cent overnight, bringing down stocks like Telecom and Sky TV but bolstering Fletcher Energy.

The NZSE-40 capital index was down 6.88 points, or 0.35 of a per cent, at 1977.36, while the small companies' NZSE-SCI capital index gained 22.13 points, or 0.43 of a per cent, to 5225.95.

Turnover of 32.07 million stocks, valued at $117.04 million, was headed by Telecom ($33.40 million) and Fletcher Energy ($25.44 million).

Shane Gavegan of Deutsche Securities said there was a bit of selling interest but the market remained generally quiet, with another quiet day expected today as markets close across the Tasman for Australia Day.

Telecom shed 12c to $5.38, but Telstra was up 17c at $8.85 on the back of a reasonable global telco performance.

"I think the market got a little bit ahead of itself in relation to [Telecom], the stock got pushed up quite high," Mr Gavegan said.

"There was a bit of profit-taking but I think the camp is still divided on what it's looking to achieve in Australia."

Telecom has been named as one of three bidders for the mobile assets of Australian telco Cable and Wireless Optus.

The currency dip affected Sky TV, down 16c to $3.59. "[SkyTV] very much follows the currency, and it has had a good run so it was probably enough just to take a little bit of profit there. And INL didn't fall quite as much but they own such a large proportion of Sky you'd expect them to feel some weakness as well," Mr Gavegan said.

Also announced yesterday, INL chairman Sir Colin Maiden will step down and News Corp's Ken Cowley and Tom Mockridge will be appointed chairman and chief executive respectively.

Reversing its recent trend, major retailer The Warehouse gained 24c to $5.64. "It's really off a low base but quite a surprising uptick if you take into account the currency falling. December retail sales [on Tuesday] were bad but not as bad as people were expecting, so perhaps people were feeling a little more comfortable about that," Mr Gavegan said.

The currency fall however helped out Fletcher Energy, which was up 15c at $8.95. Fletcher Building clawed back 2c to $2.16.

Carter Holt Harvey was down 3c at $1.56, following an unimpressive profit result and forecast, released on Wednesday.

United Networks was down 10c at $7.80, and Tranz Rail shed 5c to $3.80.

Shares in biotech research and development company Genesis, up 25c at $7.30, have rallied strongly in the past two days on rumours the company is about to announce good news on drugs it is developing.

Baycorp gained 35c to $13.20, and Mainfreight was up 5c at $1.25.

- NZPA