NZ stocks: Sharemarket continues downward drift

The sharemarket continued to slide today with a number of top stocks falling away.

The benchmark NZSX-50 gross index fell 8.22 points to 2681.66, while the NZSX All capital index was down 3.41 points at 900.94.

Goldman Sachs JB Were's Murray Rutherford said quiet trading volumes in market leader Telecom, which fell 5c to 582, were indicative of the subdued tone of the market, in a day devoid of major corporate news.

Total market turnover was worth $67.1 million, with 35 rises and 54 falls among the 156 stocks traded.

Mr Rutherford said a number of top stocks, including Fletcher Building, Fisher & Paykel Healthcare and Auckland Airport, gave up some of their recent gains. Fletcher Building fell 4c to 481, Auckland Airport was down 3c at 665, and F&P Healthcare was down 13c at 1300.

Michael Hill Jeweller was unchanged at 595c, after today reporting total same store sales rose 7.2 per cent in the 12 months to June 30, led by growth in Australia.

Christchurch retailer Smith City announced today it will cease trading on the NZAX on Friday July 16, and begin trading on the NZSX main board on Monday July 19.

"I think there will be quite a bit of interest (in the stock). I think it's clearly a well run company with a good history, a very good brand, at a time when quite a few retailers have been well recognised by the market," Mr Rutherford said. Mike Pero Mortgages slipped 4c to 90c, reversing half of the gains booked yesterday when it upped its quarterly profit forecast.

Contact Energy rose 2c to 580, as an announcement on the sale of US-based Edison Mission Energy's 50.1 per cent stake in the company again failed to materialise.

Other stocks on the move today included: Carter Holt Harvey up 1c at 206, Hallenstein Glasson up 13c at 333, NZX down 15c at 820, Turners Auctions down 5 at 505, The Warehouse down 4c at 402, and Waste Management down 6c at 477.

- NZPA