KEY POINTS:
A fall in Auckland Airport (AIA) shares after the Canadian Pension Plan (CPP) achieved its 40 per cent partial takeover target helped pull the sharemarket down today.
Warehouse shares were untraded but were quoted lower than yesterday's 600 close after the retailer forecast tough trading conditions to continue, and a lower full-year net profit.
It reported a half-year net profit up 6.9 per cent from a year ago at $64.3 million but that included an $8m reversal of an earlier provision. Sales growth was significantly lower than the inflation rate.
The benchmark NZSX-50 index was down 22 points to 3551 after quarter of an hour of trading, despite a strong performance on Wall Street.
AIA shares fell 14c to 240 after they rose 16 per cent (35c) yesterday. Preliminary figures showed the Canadians received acceptances for 63 per cent, which means shareholders who accepted the offer will be left with a third of their shares.
The bid will now be referred to the Overseas Investment Commission and two cabinet ministers who have power of veto.
Contact Energy which rose 31c, or 3.7 per cent, to a three-month high yesterday, was off 7c to 858.
Market leader Telecom fell 3c to 385, with sentiment remaining negative on the market leader. It fell 6c yesterday on news it will get fresh competition from state-owned Orcon.
No 2 stock Fletcher Building fell another 3c to 897 after losing 8c yesterday.
NZ Oil & Gas rose 3c to 129 as oil prices hit new highs.
On the upside, Nuplex rose 6c to 634, and Vector rose 2c to 187.
Falling stocks included Freightways, 4c to 312, ING Medical, 4c to 110 and Steel & Tube, 4c to 314.
Eftpos company Provenco fell 2c to 35c while Tenon fell 5c to 120.
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US stocks rallied after a major credit rating agency said the end to subprime-related write-downs is in sight, triggering a rebound in financial shares.
Standard & Poor's said write-downs for large financial institutions were likely past the halfway mark, soothing investors' anxiety about the latest credit market fallout and increasing the allure of riskier assets.
The Dow Jones industrial average gained 35.50 points, or 0.29 per cent, to 12,145.74. The Standard & Poor's 500 Index increased 6.71 points, or 0.51 per cent, to 1315.48. The Nasdaq Composite Index rose 19.74 points, or 0.88 per cent, to 2263.61.
- NZPA