NZ stocks: Market pushes lower

The sharemarket closed lower for a second consecutive session, although local investors' reluctance to indulge in profit-taking provided some support for the market.

The top-50 shed 0.6 per cent today, beating larger losses offshore including a 1 per cent drop in Australia as confidence that fuelled the recent equities rally was dampened by reports highlighting economic weakness.

"We have had a mild pullback," said ABN Amro Craigs senior dealer Bryon Burke.

"It's fair to say the rest of the world ran into profit-taking today from its strong rally of recent weeks, but the New Zealand market - although it's down - if you take away the top three stocks, is actually pretty flat."

The benchmark NZSX-50 index closed down 16.53 points at 2812.7, having shed 1.5 per cent yesterday. Turnover totalled just $85.7 million.

Poor liquidity in the New Zealand market meant that investors who sold shares to book a quick profit faced not being able to buy them back, deterring the sort of profit-taking seen in larger markets, Mr Burke said.

Telecom lost 3c to 258 after yesterday's 11c fall, compounded by a rise in the New Zealand dollar against the Aussie currency which deterred Australian investors.

Fletcher Building was down 10c at 675, Sky City lost 3c to 291 and Fisher & Paykel Appliances fell 3c to 64. However, other blue chips made up ground, with Contact Energy up 7c at 612, F&P Healthcare up 5c at 320, Auckland Airport up 2c at 169 and Sky TV up 2c at 442.

Also on the rise were Methven, up 2c at 132, Property for Industry, up a cent at 112, Pike River Coal up 2c at 108, Guinness Peat Group a cent higher at 77 and jeweller Michael Hill up a cent at 69.

Market operator NZX lost 20c to 800 on slim turnover, Sanford was down 10c at 565, PGG Wrightson fell 5c to 140, Port of Tauranga lost 8c to 590, and Ryman Healthcare was off 8c at 160.

Dual-listed stocks were mixed, with ANZ down 7c at 2100, Westpac down 49c at 2599, Lion Nathan up 6c at 1471, and Telstra down 2c at 163.

On Wall Street, profit-taking on financial company stocks after two months of gains and news of a number of banks' share offerings helped pushed the market lower.

Technology shares fared better following comments from German software maker SAP's co-chief executive that the next few months may bring "glimmers of hope" for the global economy.

- NZPA