NZ stocks: Energy stocks dominate news as sharemarket drifts lower

Energy stocks hogged the market's attention in an otherwise lacklustre session that drifted lower throughout the day, a broker said.

At 5pm, the benchmark NZSX-50 index was down 10.33 points at 2594.78, while the NZSX-All capital index was down 2.87 points at 880.12.

Shares in Telecom finished on par at 565c after trading lower for most of the day.

Yesterday, Communications Minister Paul Swain said Telecom did not have to allow competitors access to its copper network, forcing TelstraClear to re-think its strategy.

Telecom's $28.9 million turnover represented 30.6 per cent of the $94.5 million on NZX today. There was 47 rises and 57 falls among the 147 stocks traded.

Hamilton Hindin Greene broker Grant Williamson said today's turnover was light in a market dominated by news relating to the energy sector.

The Commerce Commission today said natural gas pipelines operated by NGC Holdings, Powerco, Vector, and Maui Development should be subject to price controls.

The companies "all face limited competition in the gas pipeline services they provide", said chairwoman Paula Rebstock.

Mr Williamson said investors reacted angrily to the news, NGC shares plunging 20c to 245, while Powerco shares were down 9c at 211.

That kind of news "always created uncertainty among investors," Mr Williamson told NZPA today.

"I would call it (the NGC and Powerco share price dips) severe. I think they will bounce back because it's still early days on what might happen with price control," he said.

Meanwhile, shares in New Zealand Oil & Gas (NZOG) lost value after it said oil finds in the Pukeko-1 well off the Taranaki coast may be too small to be commercially viable.

The closed down 2c at 62 after NZOG later said it would drill two more offshore exploration within 5km of its Amokura well, also off the Taranaki coast.

Also today, both Fisher & Paykel companies lost ground after yesterday issuing their March year results.

Healthcare was down 10c at 1275 after yesterday gaining 40c on the strength of its improved net profit of $54.7 million.

Appliances fell 9c to 451, after yesterday's 7c dip. It had posted a 16 per cent rise in net profit to $83.5 million.

Other stocks on the move included: Ports of Auckland up 5c at 730, Ryman Healthcare up 2c at 242, Telstra up 5c at 531, Cavalier down 4c at 478, Hallenstein Glassons down 10c at 290, NZ Refining up 10c at 1890, The Warehouse down 2c at 442, and Wrightson up 1c at 140.

Overseas, the Dow Jones was down 0.07 of a point at 9937.64, the Standard & Poor's 500 Index was up 0.51 of a point at 1089.19, and the Nasdaq Composite Index dipped 1.58 points to 1896.59.

- NZPA