NZ stocks: Interest rate concerns, profit taking weigh on top stocks

The sharemarket's benchmark index slipped almost 19 points today as top stocks fell virtually across the board on interest rate worries both here and overseas.

At the 5pm close, the NZSX-50 gross index was 18.59 points or 0.71 percent lower at 2612.57, while the NZSX all capital index was down 4.94 points or 0.56 percent to 885.73.

Market leader Telecom fell 6c to 560, while among other top stocks Auckland International Airport was down 3c to 676, Carter Holt Harvey was down 4c to 206, Contact Energy was down 2c to 578, Fletcher Building was down 4c to 450, Independent Newspapers was down 5c to 500, Sky TV was down 5c to 545, and The Warehouse was down a cent to 435.

"All of a sudden the focus of investors both locally and abroad seems to be interest rates and the moving landscape of the interest rate environment," ABN Amro Craig's Matt Willis said.

Investors may see the Reserve Bank of New Zealand's 25 basis point interest rate hike last week as a cue to take some money off the table.

"To a degree it will be kneejerk and ...an excuse to take some profit out of this market," Mr Willis said.

Forsyth Barr client adviser Mark Devereux agreed. "Some of the companies in our market have done very well over the last three months, so there's nothing to be overly concerned about... we've seen a little bit of profit taking or consolidation."

But while the larger cap stocks headed south some smaller stocks made good gains today.

Mr Devereux said this may be a sign money was being recycled out of top stocks into better value propositions further down the board.

"People are looking for value with top stocks having been well picked over," he said.

Sharemarket operator NZX continued to climb today after Friday's news it was looking at establishing its own share registry business. NZX finished 12c higher at 930.

"That stock has continued to perform on low volume simply because there (aren't) many shares out there," Mr Devereux said.

Other stocks to buck today's trend included Tourism Holdings up 4c to 172, NorthPort up 5c to 282, Dorchester Pacific up 5c to 280, Ports of Auckland up 12c to 745, and Richmond up 20c to 270.

BayCorp Advantage was down 4c to 301, Fisher & Paykel Appliances down 5c to 470, Michael Hill down 7c to 570, Telstra down 4c to 547, and TrustPower down 8c to 412.

Total turnover today was worth $71.69 million and there were 42 rises and 61 falls among the 158 stocks traded.

- NZPA