MARKET CLOSE: NZ stocks fall; Telecom paces decliners

MARKET CLOSE: NZ stocks fall; Telecom paces decliners, Contact rises

Feb. 8 (BusinessDesk) - New Zealand stocks fell, retreating from a two-and-half year high, with Telecom Corp. pacing decliners ahead of the company's interim results on Friday, and Contact Energy Ltd. gaining.

The NZX 50 fell 4.23 points, or 0.1%, to 3383.17. Within the index, 25 stocks fell, 12 rose and 13 were unchanged. Turnover was $106.8 million.

Telecom, New Zealand's largest telco, fell1.4% to $2.18. The stock accounted for just under half of trading volumes today, with 18.6 million shares changing hands."The stock is moving on short-term news, with people taking a bet on the index changes in Australia, successful awarding of one of the (broadband) tenders, and their capex (capital expenditure) requirements," said Rickey Ward, domestic equities manager for Tyndall Investment Management. "The question is which one will come first?"

Telecom faces a reduced weighting in the ASX200, which will hit on March 18.

Fletcher Building Ltd., the country's biggest construction firm, was the other stock to dominate trade on the day, with 3.9 million shares traded, with a marginal fall of 0.1% to $8.22, as investors digest the implications of what appears likely to be a successful takeover bid for Australian pipe specialist, Crane Group.

Fisher & Paykel Appliance Holdings, the whiteware manufacturer, fell 3.5% to 56 cents, leading decliners, with the company feeling the brunt of low consumer confidence levels in its key market, Australia, which fell to a seven month low in January.

Goodman Fielder Ltd., the food ingredient manufacturer, fell 1.8% to $1.63 after world sugar prices rose to a 30-year high due to the impact of Cyclone Yasi on cane growers in Queensland.

The regions grows a third of Australia’s sugar cane.Cavotec MSL Holdings, the global engineering group, fell 3% to $3.20 after new orders in the three months ended December 2010 fell 40.6% to 32.5 million euro (NZ$57.3 million).

The company, which owns Christchurch-based MoorMaster, said excluding the 30 million euro order from Bahrain International Airport gained in the same quarter a year earlier, new orders in the December 2010 quarter were up 31.6%.

Its order book at Dec. 31, 2010, stood at 66.4 million euros, up 1.5% from a year earlier but down 8.4% from the third quarter of 2010.

Orders received in 2010 of 144.2 million euro were barely changed from 2009.Air New Zealand Ltd., the national carrier, was unchanged at $1.40. The airline today announced it had signed a code-share agreement with Etihad Airways, the Abu Dhabi-based national airline of the United Arab Emirates, which will see them share domestic, trans-Tasman and Australia-Abu Dhabi routes. The code share flights will start from the end of March, subject to regulatory approvals.

Warehouse Group, New Zealand’s biggest listed retailer, fell 0.6% to $3.63 after it named the head of its chain of stationery stores, Mark Powell, to replace departing chief executive Ian Morrice.

The management change will be effected through a transition period over the coming months, chairman Keith Smith said. Morrice is to depart by November.Contact Energy Ltd., the third biggest listed company in New Zealand, rose 1.1% to $6.32, leading gainers.

Retail stock gained on the day, led by clothing chain Hallenstein Glasson Holdings, which rose 1% to $3.92. The company was one of the top 10 performers on the benchmark index last year, with the stock gaining 24% in 12-months.Kathmandu Holdings, the outdoor clothing retailer, rose 1% to $2.09.Pumpkin Patch Ltd., the children's clothing retailer, rose 0.7% to $1.50.

(BusinessDesk) 17:59:31

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