NZ stocks: Sharemarket falls on light corporate news

The sharemarket fell again today, on the back of light domestic corporate news and continued poor performances from the United States equity markets.

The benchmark NZSX-50 gross index was down 8.86 points at 2568.11, while the NZSX-All capital index fell 3.39 points to 871.8.

Bellwether stock Telecom finished the day unchanged at 560.

Total turnover was worth $138.4 million. Of the 154 stocks traded there were 29 rises and 75 falls.

Despite ending the day on a down note, ABN Amro Craig's Matt Willis said there were signs in intra-day trading that the market was close to finding a comfortable level, as the market comes to terms with the recent interest rate hike by the Reserve Bank.

"I think that's because the consensus view is that ... rates are probably not going to impact on corporate profitability too drastically in the medium term," Mr Willis said.

He said despite the recent rate hike and the possibility of another hike later this year, yields from the equity market were still attractive relative to the bond market and other investments.

Lion Nathan rose 10c to 715, after this afternoon confirming it was in advanced talks with Heineken about creating a joint venture for the manufacture and distribution of premium beer brands in Australia.

The implications for New Zealand's DB Breweries, which has a close relationship with Heineken in New Zealand, are not yet clear.

"It's an interesting one given that DB have a licence to brew and distribute Heineken in New Zealand," Mr Willis said.

DB was down 15c at 845, on light volume of 2994 shares early in the day before Lion Nathan made its announcement.

DB Breweries today announced a half year profit of $17.2 million, up 21 per cent from the same period the previous year. The company will pay a fully imputed dividend of 16.5 cents per share.

"Their core business has chugged along very nicely and that result I think is very much in line with expectations," Mr Willis said.

NZX, which has been one of the year's stronger performers, continued to fall today, down 20c at 870, on top of yesterday's fall of 25c.

Other stocks on the move today included Contact Energy down 8c at 574, Carter Holt Harvey up 3c at 202, Air New Zealand down 1c at 41, Fletcher Building down 8c at 426, Waste Management down 7c at 442, Promina down 12c at 395, Independent Newspapers Ltd up 6c at 479, Ports of Auckland down 10c at 725, Richmond up 15c at 285, Tower down 6c at 155, Trust Power down 5c at 410 and Michael Hill Jeweller down 7c at 590.

- NZPA