NZ stocks: Market drifts lower with US holiday

7.00pm

The New Zealand sharemarket's leading indices drifted lower on light volumes today as investors remained non-committal in advance of today's public holiday in the US.

The benchmark NZSX-50 finished 10.83 points or 0.44 per cent lower at 2431.05, while the NZSX-40 capital index was 11.34 points or 0.50 per cent lower at 2244.79. Turnover was a puny $48.40 million with stocks to rise outnumbered by those falling 47 to 43 on 144 traded.

Bryon Burke of Amro Craigs Equities said the light turnover was unsurprising.

"It seems to be the way when the US is closed overnight, it's a good excuse for people to sit on their hands. Stocks just drifting off seems to be the general theme".

US markets will remain closed tonight for the Presidents' Day public holiday.

Direct Broking's Brett Wilkinson said the market showed a "slightly sleepy tone today" with price movements exaggerated by small volumes.

Market leader Telecom was down 6c to 553 in what Mr Wilkinson said was probably profit taking by "currency exposed investors".

The market's number two stock Carter Holt Harvey finished the session 5c lower at 190 on speculation the company will float its tissue business on the sharemarket rather than sell it off in a trade sale.

Mr Burke said individual stocks were being affected by company announcements made recently and some pending.

Agricultural equipment manufacturer Skellmax, which on Friday posted a flat December half year net profit of $6.19 million, was down 2c to 123, while rural services firm Wrightsons was down 4c to 132 in advance of its first half result on Tuesday next week.

Carpet maker Cavalier Corp, which posted a healthy December half year net profit on Friday was up 13c at 528.

Electronic payments equipment manufacturer Provenco saw its shares run up 9c to 58, a two year high today after it announced a $21 million deal with Malaysia's national fuel retailer Petronas Dagangan Berhad.

Mr Wilkinson said it was pleasing to see stocks like Provenco being rewarded, "where management has been effective and managed to turn the company around".

Also on the rise was Fletcher Building which firmed 4c to 403, the Warehouse which was up 5c to 470, and TrustPower up 12c to 712.

Jewellery retailer Michael Hill moved 7c to 528 after a positive result last week in what Mr Wilkinson said was probably profit taking.

Telco TelstraClear was down 12c to 524 continuing to drift down, despite its Australian parent's better than expected half year result last week.

Overall, Mr Burke said today's local session was "not a great start to the week", but tomorrow may also be slow as well due to the US holiday.

Among other stocks to move today were: Ebos down 8c to 358, Fisher & Paykel Appliances down 2c to 368, Fisher & Paykel Healthcare down 5c to 1240, NZX up 15c to 705, Ports of Auckland up 7c to 767, Software of Excellence down 8c to 144, Steel & Tube Holdings up 6c to 400, Waste Management down 6c to 420.

- NZPA