NZ stocks: Market loses ground as investors take profits

Top stocks Contact Energy and Carter Holt Harvey were today among many listed firms that pulled the sharemarket significantly southward.

The benchmark NZSX-50 index fell 19.75 to 2991.15, taking it below the 3000 mark for the first time in since November 30.

The NZSX-All capital index also fell, down 5.78 points to 981.86.

Turnover was $138 million, including $64.8m worth of Telecom, which closed unchanged at 601c after being down most of the session.

Contact was down 15c at 628, while CHH was down 1c at 214.

At market's close the NZSX-50 board was littered with stocks that had tumbled lower in what Hamilton Hindin Greene broker James Smalley called a market "shake-out".

"The market's had a pretty good run over the past couple of weeks and people are now looking to take a bit of profit," Mr Smalley said.

A dip in the New Zealand dollar and a fall in oil prices were factors, he said, adding the Australian market and several US indices were also down.

TrustPower was down 5c at 555, NZ Oil & Gas was down 1c at 101, while NGC Holdings slipped 5c to 314 after Vector said it would mail its new takeover offer to shareholders on Friday.

Richina Pacific was up 2c at 67 after the former NZ firm said its full year profit would rise 160 per cent to more than US$6 million ($8.43 million).

The improved outlook was "directly attributable" to Richina's recent purchase of Shanghai Leather, chairman John Walker said.

Restaurant Brands was down 4c at 132 after yesterday posting improved sales for the 12 weeks to November 29.

Investors were likely reacting to news the firm would face competition in the form of a Red Rooster NZ chain of takeaway chicken outlets.

"The spectre of competition and possibly reduced margins is looming above them. How are they going to cope with that?" Mr Smalley said.

Retailer Pumpkin Patch was down 5c to 257, although a number of brokers said it was overpriced earlier this week.

"That's a bit of a technical correction that we've seen today," Mr Smalley said.

Retail jeweller Michael Hill International was up 5c to 810, after earlier hitting 830. Hellaby was down 5c at 615, Briscoe was up 2c at 138, and The Warehouse was down 4c to 358, .

"Whenever they (The Warehouse) have a rise there's plenty of sellers jump in the market to meet the buyers," Mr Smalley said.

Ports of Auckland was up 4c at 652, and Port of Tauranga up 3c at 564.

Other shares on the move included: AMP down 15c at 725, Fisher & Paykel Healthcare down 8c at 294, Skellmax up 1c at 126, F&P Appliances down 7c at 442, and Sky TV down 9c at 591.

- NZPA