NZ stocks: Markets dip slightly as investors return

6.30pm - By ADAM BENNETT

The New Zealand sharemarket finished slightly lower today in a fairly active and volatile session as investors recently sidelined by interest rate concerns showed signs of returning to the market.

The benchmark NZSX-50 gross index ended the day 4.74 points or 0.18 per cent lower at 2617.39, while the NZSX all capital index finished 0.80 points or 0.09 per cent lower at 887.91.

Macquarie Equities New Zealand's Rob Gwyther, said the New Zealand market remained volatile despite the US Federal Reserve and Australia's Reserve Bank deciding to leave interest rates unchanged over the past 24 hours.

The decisions didn't help offshore markets a great deal, he said, "it's a question of not now but later".

However, the local market showed some signs of investor activity despite its lower finish with respectable total turnover worth $108.32 million. Of the 149 stocks traded 53 rose and 52 fell.

Top stock Telecom finished unchanged on 562 on turnover worth $52.25 million.

Mr Gwyther said energy generator and retailer Contact's fortunes today mirrored those of the wider market. Contact ended the session 7c lower at 583.

"It opened at 590, went to 591 and closed on its lows, that's pretty much the story of the market today," he said.

Carter Holt Harvey (CHH) finished the session 2c lower at 205 after chairman John Maasland warned that proposed regulatory changes and energy supply concerns could see the company hold off future investments in New Zealand.

Feltex Carpets launched its initial public offering today (IPO) in what it said would be the sharemarket's largest float in five years.

The carpet maker debuts on the stock exchange on June 4. An indicative offer price range of $1.70-$1.95 has been set with a final price to be announced on May 24.

Mr Gwyther said a lot of brokers had turned up to Feltex's presentation today, likely attracted by the stock's promised high yield and relatively low price to earnings ratio.

Fellow carpet maker Cavalier Corp lost 8c to 480 today.

Elsewhere, Mr Gwyther said a number of stocks that had enjoyed good runs recently drifted off today including Fisher & Paykel Healthcare which ended 15c lower at 1285.

Other stocks to move today included: BayCorp Advantage up 2c to 305, Dorchester Pacific up 5c to 285, Fisher & Paykel Appliances up 4c to 468, Fletcher Building down 3c to 447, Guinness Peat Group up 3c to 214, Independent Newspapers down 5c to 495, Infratil up 5c to 310, Michael Hill up 3c to 572, NGC Holdings down 6c to 248, Ports of Auckland down 5c to 740, Promina down 3c to 432, Sky City up 3c to 449, Sky TV up 3c to 545, Telstra down 5c to 541, Toll NZ, formerly Tranz Rail down 2c to 153, TrustPower up 16c to 416, and The Warehouse up 2c to 436.

- NZPA