NZ stocks: Sharemarket falls as Telecom takes a dip

12.40pm

The New Zealand sharemarket fell this morning as bellwether stock Telecom slipped.

At 11.30am, the benchmark NZSX-50 gross index was down 0.51 points at 2610.00. The NZSX-All capital index was down 0.11 points at 884.03.

Among the 112 stocks traded were 48 rises and 19 falls.

Turnover was $39.6 million.

Telecom shares were down 4c at 570 having traded $17.16 million worth by 11.30am.

Stock exchange operator NZX shot up 15c this morning to 940, after yesterday's announcement of a March quarter net profit after tax of $869,000.

ABN Amro Craig broker Matt Willis said the expectation is that NZX will invest in new earnings streams to boost its future earnings.

"On the current price it looks very expensive on a price/earnings basis. But I think the expectation is those earnings could be ramped in the medium term quite significantly," he said.

Sky City Entertainment was unchanged at 442, after it today said it had applied for Commerce Commission approval to acquire United Kingdom firm Aspinall's stake in Christchurch Casino.

Mr Willis said the weakening New Zealand dollar over the past few days had helped boost export stocks like Fisher & Paykel Healthcare, which was up 5c this morning at 1245.

Fishing company Sanford was unchanged at 495 at 11.30am after announcing it had ceased merger talks with Sealord and Pacific Marine Farms.

Rubicon shares were down 2c at 85, while Tenon shares were down 3c at 194.

Ports of Auckland shares gained another 6c today to 756, adding to yesterday's 5c rise. The company yesterday said the Government was to buy its Westhaven Marina for $52 million.

The Government is expected to confirm the purchase of the port company's Hobson West Marina next week.

Shares in jewellery retailer Michael Hill were up 10c at 565 after it said store sales in the nine months to March were up 6 per cent on the same period last year.

Other shares on the move included: Auckland International Airport up 1c at 643, DB Breweries down 3c at 817, Guinness Peat Group up 5c at 215, Horizon up 5c at 410, Vetex up 3c at 168, Turners Auctions up 5c at 445, Cavalier down 4c at 485, Contact Energy up 2c at 544 and Wrightson up 2c at 143.

- NZPA