NZ stocks: Sharemarket falls from record high

A slightly subdued sharemarket fell today as investors took profits gained yesterday when the market hit a record high.

The benchmark NZSX-50 gross index fell 6.60 points to 2660.79 while the NZSX-All capital index was down 1.91 points at 891.75.

Bellwether stock Telecom was down 1c at 579, after gaining 6c yesterday. Turnover in the stock again dominated the market.

Matt Willis of ABN Amro Craigs said the company's announcement yesterday it was investing $40 million in a 3G mobile network had driven interest in the stock today.

Turnover in Telecom was worth $74.16 million, accounted for more than half the total market turnover of $119.5 million.

"On balance you would say the rest of the market was relatively quiet today. Any pullback that we've seen across the board looks to be, in general terms, on fairly light turnover, so you can't read too much into it," Mr Willis said.

In a day devoid of major corporate news, there were 45 rises and 49 falls among the 153 stocks traded.

Electricity generator and retailer, Contact Energy fell 7c to 577c, on reports the process for the sale of Edison Mission's half stake in the company had been delayed for two weeks.

"I think it's accepted there's going to be a trade sale there. It's just the structure of the deal and who's the buyer...that may dictate things from here," Mr Willis said.

Lion Nathan fell 13c to 735, after yesterday rising 18c and hitting an all time high of 748.

Wrightson fell 3c to 147, following the close of Rural Portfolio Investments' (RPI) partial takeover offer yesterday.

RPI has received acceptances well in excess of the 50.01 per cent it was after, and will scale back the acceptances in line with its target.

Yesterday Fonterra, which holds just over 19 per cent of Wrightson, did a u-turn and said it would sell to RPI, after earlier saying it would hold on to its stake.

Other stocks on the move today included: Stock exchange operator NZX was up 10c at at 850, Fletcher Building down 5c at 455, Fisher & Paykel Healthcare down 5c at 1307, TrustPower down 9c at 435, The Warehouse down 3c at 425, Nuhaka Farm Forestry down 68 at 467 and Powerco up 11 at 207.

- NZPA