NZ stocks: Profit taking on Telecom sends market south

Profit-taking on market leader Telecom was the principal feature of a day of mixed trading on the New Zealand sharemarket today.

The NZSX-50 gross index finished 14 points or 0.66 per cent lower at 2157.87, while the NZSX-40 capital index ended 13 points or 0.61 per cent lower at 2087.26.

Turnover was a relatively light $71.7 million on 39 million shares traded.

Most of the market's drop was attributable to Telecom's 9c fall to 510, "the first down day Telecom's had of any sort of note in quite a large number of days," ABN Amro Craigs Equities retail adviser Bryon Burke told NZPA.

Telecom saw a small drop yesterday but had a 10-day stretch of gains before that, Mr Burke said.

"Nine cents on Telecom is about 10 points on the (NZSX-40 capital) index and the index is down 13 so that's the bulk of it."

Discount retailer the Warehouse also headed south today, losing 10c to finish at 465.

Meanwhile, trading in rights for vexed financial services group Tower continued to be brisk today with 10 million changing hands -- "quite a phenomenal performance", Mr Burke said.

The company has issued rights in a capital-raising underwritten by Guinness Peat Group intended to pay off pressing debt.

"It's most unlike any other rights issue I've ever seen," Mr Burke said.

The normal pattern of rights trading saw fluctuations in price and volume up until trading closed, he said.

Tower rights had been "rock solid" at 28c to 32c throughout the whole period of trading so far on heavy volumes. Trading finishes on Friday.

Tower shares dipped by a cent to 124 today.

Shares in Tranz Rail also dropped by a cent today to 103.

A complaint by 7 per cent shareholder Infratil has sparked a Takeovers Panel investigation about the exclusive Toll Holdings and Government rescue-takeover bid for the rail operator.

The panel is investigating whether the bid breached or may breach rule 38 of the takeovers code.

If upheld the complaint may level the field for other buyers, an analyst said today.

Elsewhere, TelstraClear fell by 9c today to 526, a move which matches the company's slide on the Australian market, Mr Burke said.

Stocks to rise today included: Auckland International Airport up 4c to 600, Cavalier Corp up 7c to 472, Contact Energy up 2c to 477, Dorchester Pacific Group up 3c to 166, Fisher & Paykel Healthcare up 5c to 1185, Infratil up 2c to 215, NZX up a cent to 486, Pacific Retail up 3c to 215, Sanford up 5c to 500, Sky City up 5c to 920, Sky TV up 4c to 474, and Tourism Holdings Ltd up 2c to 128.

Among stocks to fall were: BayCorp Advantage down 7c to 163, CarterHolt Harvey down a cent to 168, Fletcher Forests down 2c to 113, Fisher & Paykel Appliances down 5c to 1345, Fletcher Building down 2c to 398, Genesis Energy down 2c to 110, Independent Newspapers down 3c to 415, Michael Hill down 3c to 420, Owens Group down 7c to 92, and Richmond down 2c to 310.

There were 38 rises and 51 falls among the 135 shares traded.

- NZPA