Sky City stars as lead players fall back

The New Zealand sharemarket retraced a touch yesterday after Monday's powerful 2 per cent rise as recent protagonists Telecom and Fletcher Challenge Energy shed some of Monday's big gains.

The NZSE-40 capital index closed down 7.69 points at 2105.32 as investors took profits from the leaders.

Turnover was again strong, at $137.27 million, and Telecom accounted for $68.78 million while WestpacTrust and Fletcher Energy both had volumes just below $10 million.

Telecom gave back 10c to 758. JB Were's John Cobb said the focus for the company was the radio spectrum auction, although at this early stage there were no real clues to the ultimate outcome in terms of price and competitive ramifications.

Fletcher Energy eased 7c to 709.

Sky City, which jumped 30c on Monday, rose a further 19c to 679 - a return to February levels. Mr Cobb noted regulatory fears and worries over its casino interest in Adelaide had waned. The stock has also benefited from an easier interest rate outlook.

Air NZ As were up 6c at 195 and the Bs rose 10c to 245, building on Monday's strength. One broker suggested the change in management sparked by the departure of chief executive Jim McCrea on Friday was positive, with expectations of further control being exerted by 25 per cent shareholder Singapore Airlines.

Frucor, with some brokers valuing the new listing at 220, was up 4c at 200 as its foray into the British drinks market exceeds expectations.

Carter Holt Harvey eased a cent to 180. After the market closed, first quarter sales figures came in positively at $945 million compared with $733 million for the 1999 period.

The Warehouse continued to firm, rising 9c to 588, GDC Communications gave back 22c to 376 after its strong run, Baycorp also reversed, dropping 25c to $11.65 while Ephone added 8c to 33.

Contact fell 3c to 286, Fisher and Paykel rose 6c to 675, Fletcher Building, with corporate raider GPG reportedly interested, was up 5c at 240, INL lost 21c to 385, Lion Nathan was up 15c at 495, Ports of Auckland gained 14c to 435, Tower lost 10c to 502 and WestpacTrust partly paids added 6c to 836.

- NZPA