NZ stocks: Market drifts lower in quiet session

The New Zealand sharemarket retreated further from recent highs in a quiet session today.

The benchmark NZSX-50 gross index closed down 3.63 points, or 0.16 per cent, at 2203.40 after touching five-week highs yesterday. The top-40 capital index was down 0.15 per cent at 2126.65.

Topping turnover of 24.34 million, valued at $53.29 million, was Telecom's $15.98 million.

Peter Lynds of Direct Broking said the market was stable but quiet.

"The market's back a touch on reasonably light volume, there are no real standouts."

Fisher & Paykel Appliances fell 20c to 1400 after it stretched to new highs yesterday on news of an alliance with the world's biggest whiteware firm, Whirlpool of the United States.

"Telecom's a touch weaker (down 4c at 523), and Fletcher Building's steady (down 1c at 418) ahead of its result tomorrow."

Fletcher Building is expected to post a full-year profit after tax about $300 million, and its share price has improved in the last couple of months in anticipation of a good result, reaching a 4-1/2 month high yesterday of 419.

"There's a bit of buying in The Warehouse too (up 9c at 512), following on from retail figures yesterday," Mr Lynds said.

Strong June quarter retail figures also boosted fellow retailers Briscoe Group, up 6c at 184, Hallenstein Glasson, up 5c at 290, and jeweller Michael Hill International, up 11c at 433, Kirkaldie & Stains up 9c to 335, although Pacific Retail was down 2c at 228.

Telecom's weakness, on top of a 3c fall yesterday, was not due to any specific factors.

One of the top stocks was also among the smallest -- vehicle auctioneer Turners Auctions which listed late last year and reached a high today.

"Turners Auctions hasn't sold for a couple of days, and they're up 29c to 370 -- I think that's due to the retail figures once again, and car sales," Mr Lynds said.

Air NZ was unchanged at 49 after announcing a revamp of its trans-Tasman service that will see it reduce its fares by an average of 20 per cent. The airline will also be introducing a cafe style meal service on its new Tasman Express flights.

Auckland Airport, expected to benefit from increased flights, was up 8c at 611.

F&P Healthcare rose 2c to 1205, Baycorp Advantage rose 3c to 189, Carter Holt Harvey was up 1c at 165, Guinness Peat Group rose 1c to 159, and Infratil gained 1c to 227.

Contact Energy was down 3c at 492, AMP fell 2c to 508, Fletcher Forests was down 1c at 117, Tower Group lost 3c to 121, Sky City fell 11c to 917 and Sky TV was down 3c at 465 .

There were 59 rises and 44 falls on the 142 stocks traded.

In the US the Nasdaq Composite Index rose 14.71 points, or 0.89 per cent, to 1658.74; the blue-chip Dow Jones industrial average fell 6.31 points to 9184.78; and the broader Standard & Poor's 500 Index added 1.47 points to 979.06.

- NZPA