NZ stocks: Profit-takers ends market's winning streak

6.03am

The sharemarket broke a six-day winning streak as profit takers cashed in today.

Forsyth Barr Frater Williams broker Richard Burton said there remained good pockets within the market but because it had rallied so strongly this month, some investors assessed a number of stocks as fully priced.

There was good volume in market leader Telecom and Powerco where overseas investors were buying up heavily at today's price to cash in on Prime Infrastructure's 215/share bid.

Telecom, which had risen from 562 to 590 in the past seven sessions, today fell back 7c to 583 on volume worth over $64 million.

Powerco held steady on 210 on turnover worth $28m. Mr Burton said he doubted any party was buying a 10 per cent blocking stake against Prime's bid but overseas investors were taking advantage of the guaranteed cash they would be paid by the bidder.

The benchmark NZSX-50, which yesterday hit a life high, closed 10.88 points lower at 2788.88 today.

The NZSX-All capital index finished down 3.47 points at 930.62.

The offshore influence was mixed with Wall Street down sharply but the British market surging to a two-year high.

Number two stock Carter Holt Harvey also weighed the market down with a 5c fall to 225 and number three, Contact Energy, fell 2c to 598.

Some of those to succumb to profit taking included Hellaby, down 9c to 585, Tower, 4c to 211, Lion Nathan, 7c to 753 and Tenon, 3c to 203.

Ports of Auckland fell 9c to 665 on a report showing container volumes had fallen, with Port of Tauranga believed to have picked up the slack. It rose 10c to 530.

Fletcher Building rose 11c to 575 on good volume of nearly $5m with investors still keen to chase it despite its strong rally this quarter.

Clothing retailer Hallenstein Glasson rose another 5c to 360 after yesterday posting a record August year net profit of $17.16m. The stock gained 20c yesterday as analysts applauded the result.

Any suggestion the Government would reap more from Australian banks by making them pay their full whack of tax, failed to dent their shares. Westpac NZ powered 29c ahead to 1765 and ANZ rose 12c to 1965.

Fisher & Paykel Appliances continued its poor run of the last six weeks, dropping another 5c to 410 today. F&P Healthcare continued to attract plenty of interest but it fell 1c to 1474.

There was also good buying in GPG, which rose 2c to 204.

NZ Oil & Gas closed 5c up at 79. There was no news out on NZOG although there were rumours swirling of a new gas find at Kapuni in Taranaki -- denied by Todd Energy.

The Warehouse continued to lose ground in the wake of its poorly received result, falling 5c to 429.

Air NZ, currently conducting road shows in Australia and its executives due to meet Qantas's top brass tomorrow to try and map out a new way to cooperate, closed steady on 182.

Fishing company Sanford gained in the morning but closed down 2c at 448 following yesterday's 17c gain on yesterday's news it was buying most of the assets of Auckland-based Simunovich Fisheries.

Insurer Promina maintained its good form, rising 7c to 480 and AMP rose 6c to 667.

Others to extend their recent rallies included Waste Management, up 3c to 520 and Steel & Tube, up 8c to 440.

The small stocks index gained 17.64 points to 7610.77 while the top 10 index fell 7.82 points to 1119.14.

Investors liked Designer Textiles's change of name, pushing the stock up 8c to 148.

Some 46.9 million shares changed hands worth $155.2m. Among the 157 stocks traded, 47 rose and 53 fell.

- NZPA