The New Zealand sharemarket edged lower on light volume today, shrugging off yesterday's announcement of the make-up of the Labour-led government.
ASB Securities head of advisory Stephen Wright said investors were more concerned about interest rate rises, the prospect of an economic downturn, and the stubbornly buoyant kiwi dollar.
The
benchmark NZSX-50 index closed 11.77 points lower at 3346.85, while the NZSX all capital index was down 3.97 points at 1024.67 -- bucking the rising trend in offshore markets.
Turnover was lacklustre, with 24 million shares worth $73 million changing hands.
Falls clearly outpaced rises by 77 to 28 among the 147 stocks traded.
"It is all the factors people have been talking about -- economic downturns, interest rates rising, and the currency rising, all just combining to make a deteriorating investment environment," Mr Wright said.
"The Government is more right-leaning than we had thought... but really there is nothing there to get excited about or upset about."
Among the leaders, Contact Energy lost 4c to 717, The Warehouse lost 4c to 402 and Sky City lost 6c to 457.
Fletcher Building shed 11c to 788 after brokerage Citigroup upped its profit forecasts, but downgraded the stock to "hold" from "buy" after a strong share price rise.
Citigroup increased its pre-abnormal profit forecast by 5 percent for fiscal 2006, to $342 million and by 5.5 percent to $347 million in 2007.
Troubled carpet maker Feltex announced after the local market close that initial merger talks with its Australian rival Godfrey Hirst had fizzled.
Feltex chairman Tim Saunders said talks were continuing, but it had taken independent advice and rejected a first round proposal -- thought to involve a full merger and possible reverse takeover by privately-held Godfrey Hirst.
The stock closed a cent lower at 62c -- a far cry from its 2004 initial public offer price of $1.70.
Among those bucking the downward trend, top stock Telecom rose 4c to 597.
Air New Zealand added a cent to 110 after announcing it has firmed up an engine service agreement with global electricity giant General Electric, and Lion Nathan added 18c to 865,
- NZPA
