NZ shares touch softer in mixed trading

By NZPA

Monday 20th November 2006

The New Zealand share market followed other markets down today, with a mixed performance among the top stocks.

The NZX-50 index fell 7.02 points to 3809.21, with falls outnumbering rises 50 to 47. Turnover was valued at $74.7 million.

Hamilton Hindin Greene partner Grant Williamson said there was little corporate news to prompt trading.

Top stock Telecom fell a cent to $4.47, and Telstra lost 14c, or 3.2%, to $4.21.

In Australia, new shares in Telstra debuted strongly today, rising up to 9%, although the main shares fell 4%. The government doubled the size of its holding for sale, raising $A15.5 billion ($NZ18.1 billion).

Fletcher Building continued to pull back, closing down 10c at $9.75.

"Certainly there is some profit taking, it's had a great run, it got over the magical $10-mark briefly," Willamson said.

Fellow blue chips also softened, with Contact Energy down 5c at $7.84, Sky City off 7c at $5.03, and Sky TV 6c lower at $5.88.

Infrastructure investor Infratil hit a new high, up 23c at $5.18, in the wake of its purchase of a 24% stake in TrustPower, adding to its 35.2% holding. On Friday, Infratil said it was selling 12.35 million TrustPower shares at $7.00 per share.

"Of course they really had a major coup when they managed to buy TrustPower's holding at such a reasonable price, and then onsell and sell down and take a profit along the way. I think a very smart move there, and investors are giving them the credit," Williamson said.

TrustPower shares closed 10c lower at $7.40.

CanWest MediaWorks rose 11c, or 6%, to $1.91, on more than one million shares after Australian television broadcaster Seven Network said it will form a $A4 billion media joint venture with private equity firm, Kohlberg Kravis Roberts (KKR).

The joint venture would be Seven and KKR's vehicle to pursue media opportunities in Australia and New Zealand.

"Analysts are starting to say that when you look at the prices these other companies are getting, MediaWorks looks quite cheap," Williamson said.

Mainfreight rose 20c to a new closing high of $7.25 ahead of its first half result on Wednesday, Briscoe Group was steady at $1.70 after it said it would buy the Living & Giving chain, and Mooring Systems rose 15c to $4.60 after its first half result.

Shares in Abano Healthcare gained 3c to $2.20 after its dental business, Lumino Care Dental, increased its network across New Zealand to 22.

Australia's benchmark index lost 0.4%, with the original Telstra shares dropping after the larger than expected government share sale. In Japan, the Nikkei index fell 1.8% as investors punished Mizuho Financial Group and other banks ahead of their earnings results.

On Wall Street on Friday, a 2% rise in Altria Group stock propelled the Dow to its 18th record close since the start of October.

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