NZ stocks: Market loses ground

6.00pm

The New Zealand sharemarket eased today with trans-Tasman data management company Baycorp Advantage leading the charge downward.

The benchmark NZSX 50 gross index closed down 0.29 per cent, or 6.21 points, at 2105.87, while the top-10 index was down 0.31 per cent at 948.96.

Topping turnover of 28.84 million stocks valued at $79.54 million was Telecom's $31.32 million. Telecom ended the day up 1c at 506.

Stephen Wright of ASB Securities said Baycorp Advantage continued its slide begun yesterday to close down a further 15c at 155, on rumours that it may be facing litigation over its Telstra contract.

Baycorp lost 2c in New Zealand yesterday but was thumped down more than 8 per cent across the Tasman.

Baycorp said in a statement after the New Zealand market closed that its subsidiary which won the A$300 million ($347 million) Telstra contract, Alliance Factoring, had not been informed of litigation and had no comment to make.

"Alliance Factoring is unaware of any legal deficiency in the debt loading or recovery processes it follows."

The Australian Financial Review reported today that Baycorp allegedly transferred some details from Telstra, part-owned by the government, to its consumer credit bureau without written consent from creditors as required by law.

Auckland International Airport rose 15c to 570, following rises in airport companies around the world.

"That could be on Emirates Air coming here," Mr Wright said. Emirates Air is the latest arrival on the competitive trans-Tasman route, increasing the landing fees paid to airports.

"Airports in the UK were up, Macquarie Airports has been up, and airlines have also been up too -- it's a general phenomenon around the world that travel-related things have been up," Mr Wright said.

The two-thirds owner of Wellington Airport, Infratil, was unchanged at 202, while Air New Zealand rose 1c at 52.

Contact Energy was down 12c at 477, falling from its record highs yesterday as profit-takers moved in. The power generator and retailer said today it has abandoned drilling at its Ohaaki geothermal field northwest of Taupo.

The Warehouse closed up 3c at 442, while fellow retailer Briscoe Group lost the same amount to close at 198 and Pacific Retail was down 7c at 218 on light turnover.

Seasonally adjusted retail sales for April were down 0.3 per cent on March, Statistics New Zealand said, which was worse than economists' forecasts of a 0.4 per cent rise.

Elsewhere on the market Tranz Rail was unchanged at 91, Carter Holt Harvey was down 3c at 166, Fletcher Building lost 9c to 371, and Restaurant Brands gained 1c to 149.

Fisher & Paykel Appliances was up 2c at 1287 and F&P Healthcare rose 1c to 1130.

Among financial services stocks AMP lost 11c to 560, Tower shed 3c to 156, newly listed Promina was up 2c at 246, ANZ Bank was up 28c at 2180, and Axa was up 3c at 249.

There were 58 rises and 44 falls on the 135 stocks traded.

- NZPA