NZ stocks: Flat sharemarket dips into the red

Telecom led the sharemarket into negative territory today as the market ended a moderate day's trading in the red.

The benchmark NZSX-50 gross index was down 1.53 points at 2566.58 and the NZSX-All capital index was down 1.34 points at 870.46.

Bellwether stock Telecom fell 5c to 555 on turnover worth $35.4 million.

"It was a day of moderate turnover levels and as tends to be the case... Telecom dominates the market's turnover," said First NZ Capital research manager Barry Lindsay.

Total market turnover for the day was worth $95.1 million.

Of 153 stocks traded there were 53 rises and 57 falls.

Mr Lindsay said the standout performer among the larger capitalised companies was NGC Holdings, which rose 11c to 255.

He said the rise was probably driven by speculation that Australian Pipeline Trust is interested in buying Australian Gas Light's 66 per cent stake in NGC.

Contact Energy fell 1c to 573. The energy company announced it had sold its 30 per cent stake in online procurement concern e://volution, which will reduce its net profit result by $300,000 in the September year.

Tenon fell 3c to 186. It's directors today advised shareholders not to accept Rubicon's $1.85c per share takeover offer, saying it fell well below the $2.01-$2.22 valuation by independent advisors Grant Samuel.

Mr Lindsay said while Tenon's share price was well above the offer price a week or so ago, it has since come back closer to it.

"So while the valuation is at quite a premium to the takeover price it is also at quite a premium to the current market price," he said.

The Eric Watson-controlled Pacific Retail Group (PRG) said this morning it planned to float off its Noel Leeming, Bond & Bond, Noel Leeming Furniture and Big Byte retail brands in an Initial Public Offering (IPO).

PRG shares rose 6c to 206.

Lion Nathan was up 15c at 730, after yesterday's announcement it is in talks about a manufacture and distribution partnership with Heineken in Australia.

DB Breweries, which has a licence to brew and distribute Heineken in New Zealand, fell 15c to 830.

Property company Urbus rose 2c to 94, after posting a 87 per cent rise in net profit for the March year.

Air New Zealand was unchanged at 41c after announcing it was following the lead set by Qantas yesterday and introducing a fuel surcharge.

Other stocks on the move today included: Nuplex up 12c at 520, Waste Management up 8c at 450, Michael Hill Jeweller down 5c at 585, Fisher & Paykel Healthcare up 6c at 1234, Sky Network TV up 4c at 523, NZ Refining up 40c at 1910, NZX up 30c at 900 and Carter Holt Harvey down 1c at 201.

- NZPA