Overseas euphoria fails to spur stocks

Overseas markets were set alight by much-awaited comments from Alan Greenspan in the United States, but the local sharemarket reacted limply yesterday, closing weaker.

"Here it was a relatively poor finish to the week. Offshore was very strong where most markets are up," said David Price at Credit Suisse First Boston.

"The US markets responded very well to (Fed Reserve chairman) Greenspan's comments overnight, bonds rallied, equity markets rallied, and the Aussie markets rallied. New Zealand has missed out but we have been an outperformer of late anyway," Mr Price said.

Telecom was the main drag on the market with a 10c fall to 745, representing much of the NZSE-40 capital index's 8.54 points, or 0.40 of a per cent loss, to 2123.85. Total market turnover was a moderate $97.5 million with gainers outstripping losers by 68 to 37 among the 152 stocks traded.

Mr Price said there appeared to be no specific reason for Telecom's fall. "I think it's in a bit of trading range. Potentially we could see the stock drift a little lower from here."

Fisher and Paykel ended its recent very strong run, which has seen it rise by over 10 per cent this month, with a 20c drop to 720 on profit taking.

Among the smaller stocks GDC Communications stood out with a 25c, or 6.5 per cent, jump to 405 on very heavy turnover of 1.32 million shares, Mr Price said. Carter Holt Harvey was steady at 185, while Fletcher Challenge stocks were mixed with Building up 2c to 247, and Paper 1c to 249, while Energy remained in retreat, dropping 17c to 738, and Forests lost 1c to 84.

Air NZ was stronger with its A ordinaries up 5c at 186, and its B shares 9c to 243. Auckland Airport grew 3c to 270, Lion Nathan added 4c to 484, and The Warehouse 5c to 575.

AMP was down 15c at $22.15.

High-flyer beverage maker Frucor lost some bubble, slipping 7c to 213.

Smaller companies were higher with their capital index up 43.33, or 0.82 per cent, to 5302.58.

- NZPA