NZ stocks: Profit takers push sharemarket down

Profit takers shoved the sharemarket down today, ending a trot which had pushed the benchmark index to fresh highs three days running.

Matt Willis of ABN Amro Craigs said the market had had an incredible run this week.

"The momentum which felt like it had petered out a couple of weeks ago has come back with a vengeance this week. Very, very strong volumes and good price performance as well," Mr Willis said.

The benchmark NZSX-50 gross index fell 16.09 points to 2741.55 while the NZSX-All capital index fell 5.65 points to 921.34.

Market heavyweight Telecom, erased a chunk of the 28 cent gain it racked up earlier in the week, falling 12c to 601.

Mr Willis said the market seems to be waking up to the fact that the investment profile of telcos has changed, as debt levels have subsided and telcos focus more on cashflows.

Carter Holt Harvey was unchanged at 215 today, after falling 4c yesterday on the back of a disappointing half year result. The company posted a $496m June half year net profit, of which $440m was a gain on the sale of its tissue business. Shareholders also approved a $480m return of capital yesterday.

The company this afternoon announced the sale of its Rotorua sawmill to a consortium for an undisclosed sum.

Pumpkin Patch also succumbed to some profit taking today, falling 5c to 155. Mr Willis said the stock had given the retail sector a well needed jolt this week,

Briscoes remained up, rising 5c to 143, The Warehouse was up 1c at 433, Michael Hill Jeweller up 5c at 610, and Hallenstein Glassons was up 4c at 340.

Hellaby Holdings was up 11c at 541, on hopes the company will increase its full year dividend at next month's results announcement. "I think there's plenty of demand for the stock from yield oriented investors," Mr Willis said.

Contact Energy continued its rollercoaster week, down 6c at 594.

On Tuesday Australia's Origin Energy announced it was buying a 51.2 percent stake in the company from US-based Edison Mission Energy.

NGC was also affected by the announcement, as its 66 percent owner, Australian Gas Light had been picked as the front runner to buy the Contact stake. If AGL had bought the Contact shares, it was expected to offload its stake in NGC.

NGC was down 3c at 278 today, and Mr Willis said rumours persist that AGL may still sell its share in the company.

Total market turnover today was worth $111.6 million. Of the 153 stocks traded today there were 50 rises and 43 falls.

Other stocks on the move today included: Infratil down 6c at 310, Lion Nathan up 3c at 778, Sky Network TV up 7c at 520, Tenon up 2c at 193, Turners Auctions down 5c at 505 and Waste Management down 7c at 470.

- NZPA