12.30pm
The benchmark sharemarket index softened in early trading today, as investors punished The Warehouse for uninspiring sales figures.
By 11.35am today the NZSX-50 gross index had lost 1.47 points to 2879.11, while the NZSX-All capital index had fallen 0.27 to 952.62.
Discount retailer The Warehouse fell 19c immediately after it announced a
1.1 per cent increase in total sales to $488.4 million for the October quarter, but by 11.35am had clawed its way back to 392, to be 12c down.
ABN Amro Craigs broker Bryon Burke said the Red Sheds hadn't fared as well as expected, which was likely to have led to the price softening.
Same-store sales for the Red Sheds, the group's flagship New Zealand stores, fell 2.6 per cent; the group's troublesome Australian operations posted a 2.4 per cent fall in same-store sales; while Warehouse Stationery same-store sales rose 8.6 per cent.
Mr Burke said the company had a chance to redeem itself over the Christmas quarter, which is traditionally a strong period.
Fellow retailer Briscoe, which yesterday announced a 2.67 per cent fall in same-store third quarter sales, was down 1c at 136.
Bellwether stock Telecom, which has a 26 per cent weighting on the Top 50 index and generally sets the tone for the wider market, was up 1c at 590 on turnover worth $18.9 million.
Total market turnover in the time was worth $32.9 million. Of the 124 stocks traded by 11.35am there were 28 rises and 32 falls.
Fletcher Building rose 2c to 568 ahead of its annual general meeting later today.
Fisher & Paykel Healthcare gained 2c to 311 as investors gear up for its half-year result tomorrow. Mr Burke said the stock had had a good run up lately and would need a good result just to hold its current price.
Westpac lost 15c to 1975, following yesterday's 30c gain on the back of the announcement of a 6 per cent gain in annual profit to $617 million.
Other stocks on the move by 11.35am today included: Carter Holt Harvey up 1c at 208, Tower up 2c at 238, Cavalier down 14c at 450, Hellaby Holdings down 5c at 605, Auckland International Airport down 7c at 748 and Promina up 3c at 519.
- NZPA
