NZ stocks: Benchmark sharemarket index softens

12.40pm

The sharemarket's benchmark index slipped in mid-morning trading, after opening at a fresh high.

By 11.35am the benchmark NZSX-50 gross index was down slipped 0.67 points to 2695.40, after hitting a new high of 2700.83 first thing this morning. The NZSX-All capital index was up 0.05 points at 905.76.

ABN Amro Craigs' Matt Willis said the market had had a strong last couple of days leading up to the end of the financial quarter. "So it's not surprising if it goes into either a holding pattern or a bit of softening sort of period over the next couple of days," he said.

He said the strength of the domestic economy was likely to translate into a good financial reporting season in July and August.

"I think that was what was starting to get priced into this market, the expectation of slightly stronger reporting season than was previously expected," Mr Willis said.

He said today's softening could be a reflection of some profit taking, or some buyers sitting on the sidelines after a few days of strong support.

By 11.35am bellwether stock Telecom had fallen 1c to 587, on turnover worth $20.7 million.

Total market turnover by 11.35am was worth $40.7 million.

Of the 120 stocks traded there were 35 rises and 35 falls.

Yesterday the NZX rejigged the makeup of its indices, with Fisher & Paykel Appliances replacing Sky Network Television in the top 10 and newly-listed Feltex replacing Wrightson in the NZSX-50.

By 11.35am, F&P Appliances was unchanged at 456, Sky TV was up 12c at 518 and Wrightson was up 4c at 144.

Air New Zealand was up 1c at 41c. The national carrier is launching its tri-weekly service to San Francisco, with the first flight set to touch down on Friday morning.

Other stocks on the move in early trading included Fletcher Building up 3c at 458, Nuhaka Farm Forestry down 10c at 470, TrustPower up 5c at 475, Metlifecare down 3c at 237, Port of Tauranga down 2c at 516, NZX down 10c at 855, and Ryman Healthcare up 3c at 275.

- NZPA