NZ stocks: Market drifts lower, consolidates yesterday's gains

6.30pm

The New Zealand sharemarket drifted slightly lower on solid turnover in today's session, consolidating some of its gains yesterday, a broker said.

At 5pm, the benchmark NZSX-50 index was down 4.82 points at 2584.14, while the NZSX-All capital index was down 2.24 points at 875.42.

Telecom shares were down 7c at 557, its turnover equating to 56 per cent of the $167.5 million on NZX today.

There were 45 rises and 62 falls among the 154 stocks traded on the market today.

Hamilton Hindin Greene broker Grant Williamson said the market had spent the day consolidating.

"Volumes haven't been too bad today," Mr Williamson told NZPA today.

"The market is just holding up so well in the face of a lot of overseas weakness," he said.

Lion Nathan was down 22c at 715 after it today posted a March half net profit of A$118 million ($137.08 million), pulled lower by tough trading conditions in New Zealand.

Meanwhile, less than six months after it lost Telecom contracts worth $40 million annually, GDC Communications today said it was to become a sub-contractor to Alstom T&D NZ.

"It's certainly a turnaround for them (GDC) -- good news at long last," Mr Williamson said.

"But it would depend on how profitable that sort of work is going to be for them," he said.

GDC shares were up 3c at 30.

The Warehouse was up 6c at 443 after the appointment of Ian Morrice as its new chief executive officer.

Listed property fund AMP New Zealand Office Trust (Anzo) was down 1c at 82 after posting an improved net profit surplus $26.3 million for the nine months to March 31.

Restaurant Brands slipped 6c to 131 after a 150c a share offer by Auckland firm King Win Laurel died today.

"We had quite a laugh when it (the takeover offer) was first announced to the market," he said, noting investors could take confidence from the Takeover Panel's quick call for it to be withdrawn.

Other stocks on the move included: AMP down 4c at 635, Cavalier down 10c at 480, GRD Macrae down 5c at 185, Metlifecare down 5c at 210, Nuplex up 5c at 530, Carter Holt Harvey up 1c at 208, Sky City Entertainment up 7c at 465, and Vertex down 6c at 153.

Overseas, the Dow Jones sagged 108.8 points to 9904.07, the S&P 500 Index fell 11.8 points to 1083.90, and the Nasdaq Composite Index gave up 27.73 points to 1876.52.

- NZPA