Warehouse slides as Baycorp, Energy soar

The Warehouse tumbled 35c to 540 yesterday after reporting single-digit sales figures for the fourth quarter, on a day when Fletcher Energy and Baycorp surged ahead.

The Warehouse said its same-store sales rose 5.8 per cent in three months to July 31 compared with the same quarter a year ago. Total sales rose 10.2 per cent to $239.3 million in the quarter.

However, these results were not as good as expected, Cavill White Securities managing director Don Turkington said.

"It's basically a reaction to their sales report - it was considerably lower than broker expectations. There appears to be quite a marked slowdown in same-store sales growth in the red sheds - it is unusual for The Warehouse to report same-stores growth in single digits."

After the market closed, it was reported there had been delays in settling The Warehouse's Crazy Clint's and Silly Solly's deal, but Dr Turkington had not heard those reports and doubted they contributed to its dive.

The NZSE-40 Capital Index was down 1.66 points (0.08 per cent) to 2129.46, while smaller stocks advanced.

Baycorp hit a high, soaring 90c to $13.60 on turnover worth $4.6 million, continuing a strong upwards trend. Since the beginning of May, the stock has increased 39 per cent from 979.

Fletcher Energy also had a strong day, closing up 22c at 768 after surging 54c to 800 in heavy traffic in the morning, on top of a 31c jump on Thursday.

Scott St John of Credit Suisse First Boston said there had been talk about the Fletcher group's restructuring. "The market is gaining enthusiasm for whatever result that may be, whether it's a takeover or whatever."

Building was up 4c to 237 and Forests rose 1c to 87.

Mr St John said high-growth stocks like GDC, Baycorp and Frucor all had a strong day.

"They're all stocks with high earnings momentum."

GDC rose 20c to 470 and Frucor closed 7c stronger at 235.

Among the top 10 stocks, Auckland Airport rose 7c to 282, and Telecom was up 2c at 727. However, Carter Holt Harvey came off 5c to 190, Contact softened 7c to 260 and INL lost 10c to 415. Lion Nathan fell 2c to 490 and Montana 5c to 238.

Among other stocks, Sky City was up 8c to 728, TransAlta and Tranz Rail both gained 4c to 275 and 388 respectively, and Advantage rallied 11c to 286.

Steel and Tube declared a 7c dividend ahead of its profit announcement on September 8. This makes a 13c total for the year - a 63 per cent increase. The company has changed its balance date to June 30.

There was a big trade of 15.6 million shares in Brierley at 38c but the stock eased 1c to 37c.

- NZPA