Shares inch higher in quiet session, Warehouse highlight

By NZPA

Friday 7th September 2007

The sharemarket inched higher today, with little news of note to spark interest among its stocks.

The benchmark NZSX-50 index closed up 11.88 points, or 0.3%, at 4151.98, on turnover totalling $101.8 million.

A 15-point fall yesterday ended a five-session winning streak.

"People are still apprehensive in general, so I think markets are just bobbing along quietly," said David Price of Forsyth Barr.

The recent financial reporting season was largely in line with expectations, but company outlooks were a little soft, he said.

The standout stock was The Warehouse, which jumped 2% to $5.88 on news of a special dividend of 35c a share totalling $109 million.

"I think you can guess by the reaction that clearly it wasn't expected by the market," Price said.

The stock has been pressured as uncertainty continued over suitors, with Foodstuffs and Woolworths appealing a Commerce Commission's decision against a takeover.

However, private equity players were stepping away as credit dried up amid recent market ructions, Price said.

Auckland Airport was still in play, as suitors such as the Canada Pension Plan Investment Board were not in the same camp as other private equity players.

"That's more real, long-term money that's in there potentially looking," he said.

Auckland Airport shares closed up 2c at $3.09.

Telecom was up a cent at $4.38, Fletcher Building gained 6c to $11.91, Contact Energy rose 14c to $9.15, Fisher & Paykel Healthcare was up 5c at $3.55, and F&P Appliances was flat at $3.67.

Briscoe Group was flat at $1.51 after reporting a 12% fall in half-year net profit to $10.5m, as competition hit margins.

Among rising stocks, Cavalier Carpets was up 9c at $3.21, Nuplex gained 11c to $7.00, PGG Wrightson was up 9c at $1.93, and Michael Hill rose 15c to $10.15.

Air New Zealand lost 2c to $2.15, Sky City fell 2c to $4.41, Vector was down 4c at $2.41, and NZX fell 5c to $9.75.

Dual-listed stocks were largely negative, with ANZ down 14c at $33.86, APN down 10c at $6.30, Lion Nathan 5c lower at $11.00, and Goodman Fielder down 12c at $3.08. Westpac was up 21c at $31.86.

Regional markets were mixed, with Australia's benchmark index up 0.3% at 6269.9, and Japan's Nikkei average down 1.4%.

Earlier on Wall Street, stocks were helped by an upbeat earnings outlook, while economic data eased worries about a possible recession.

Comments from our readers

No comments yet