NZ stocks: Market dips after sluggish start

12.00pm

The New Zealand sharemarket was characteristically muted on opening today with the key indices remaining virtually flat in early trading before dipping as the morning wore on.

By 11.30am, the NZSX50 gross index was down 6.88 points or 0.31 per cent to 2181.42, while the NZSX40 capital index dropped 6.55 points or 0.31 per cent to 2124.22.

ABN Amro Craigs retail equities adviser Nigel Scott told NZPA the market was suffering from "Monday-itis so far".

"It seems to have been the pattern of the last couple of weeks... the morning sessions have been a little bit quieter."

Mr Scott said early activity appeared to be limited to the market "taking on the pricing for the last hour in Australia".

"Looking down here, apart from a few overseas crossings, there doesn't seem to have been a lot go through the market yet."

By 11.30am, turnover was $18.5 million on 7.4 million shares traded.

"We've had a strong market, and the market just seems to be creeping up and for that to move further on this particular market here you do need movement from the likes of Telecom," Mr Scott said.

By 11.30am, Telecom was down 3c to 519.

Meanwhile Ryman Healthcare, which was subject to a sell down of its stock last week, rose a cent to 176.

Popular new listing Promina had risen 3c to 265, and Fletcher Forests, which announced its intention to sell off its forest assets last week, was down a cent to 115.

Of three stocks to go ex-dividend today, Infratil fell 4c to 199 by 11.30am while AMP Office Trust was down 3c to 80, and Horizon Energy remained unchanged.

Elsewhere, the New Zealand Exchange announced today it had decided on a final price of $3.60 for shares in its initial public offering.

NZX said in a statement it considered $3.60 per share was appropriate based on current trading of the shares and rights, advice from institutions and pricing indications from institutions.

NZX shares already trading on the market were down 2c to 403 by 11.30am.

Among stocks to rise in early trading were: BIL International up a cent to 74, Hellaby Holdings up 26c to 440, Mainfreight up a cent to 131, Michael Hill up 3c to 450, Ports of Auckland up 13c to 785, PowerCo up 2c to 174, Richina up a cent to 37, Sky TV up a cent to 452, Steel & Tube up 3c to 373, and Tourism Holdings Ltd up a cent to 114.

Stocks to fall included: Contact Energy down a cent to 487, Fisher & Paykel Healthcare down 5c to 1150, Guinness Peat Group down a cent to 154, Rubicon down a cent to 71, and Tower Group down 4c to 148.

There were 40 rises and 31 falls among 104 stocks traded.

- NZPA