NZ stocks: Sharemarket sags as market digests results

The sharemarket suffered a spot of indigestion today as investors stepped back to consider a slew of financial results.

The NZSX-50 gross index closed down 12.49 points, or 0.5 per cent, at 2418.56, while the NZSX 40 capital index finished down 12.05 points at 2232.74.

The fall was on thin turnover worth just $42.1 million, with 34 rises and 65 falls among the 152 stocks traded.

The market was thinned by the holiday in the President's Day holiday in the United States.

ABN Amro Craig's broker Matt Willis described today's trading as "minuscule".

"Generally, the market is trying to digest a lot of the corporate news coming through, namely the half year results and that may well explain some of the low activity in the market," he said.

Market leader Telecom fell 1 cent at 552 with $14.4 million of its shares changing hands.

Contact Energy finished the day down 8c to 510, despite today posting a 49 per cent increase in its December quarter net profit.

Investors' concerns over the plans of Contact's majority shareholder, Edison Mission, may have led to the price drop, Mr Willis said.

Edison has said it was to sell off some, or all, of its international assets, including Contact. However, it shed no new light on the issue today at the annual meeting in Dunedin.

Mr Willis said the possible sale, rather than Contact's result was the driving force behind the Contact price at the moment.

Turners Auctions fell heavily after it reported its annual profit fell by 4.7 per cent to $2.83 million as a result of its move into Canada.

It sank 30c, or 6.4 per cent, to 440.



Mr Willis said there was an inherent fear in New Zealand of offshore acquisitions made by local companies.

" Turners Auction has been unduly punished for slightly poor numbers out of Canada, given the strength of the numbers from New Zealand," he added.

Ports of Auckland also took a dive after its result, slumping 22c, 2.9 per cent, to 745. It reported a 4 per cent rise in its half year net profit of $21 million.

Mr Willis said the market may have had higher expectations for the result.

"Generally speaking the corporate results flowing through are very, very good -- the earnings environment looks as strong as we thought it was so I think it's all encouraging," he said.

Stock exchange operator NZX zoomed to a new high today, up 25c to 730. The tightly held stock has risen nearly 30 per cent this year.

"Clearly the market's comfortable with the result that they released last week," Mr Willis said.

NZX reported a full year profit of $2.9 million last week.

Brewer DB group jumped 30c to 815 to a record high.

Insurance companies had a rough day. AMP fell 3c to 517, Promina fell 12c to 363 and Axa fell 6c to 288.

Pacific Retail, which recently said it was pleased with progress of its British unit, rose 10c to 210. However, The Warehouse continued its slide since reporting its Christmas quarter sales, down another 6c today to 464.

Westfield Trust fell 17c to 400 on light turnover while Westpac NZ dropped 25c to 1765.

Finmedia, formerly Dairy Brands, rose 28c, or 37 per cent, to 103, for no explained reason.

Among other movers, Hellaby fell 19c to 470, Kirkaldies rose 6c to 316, and Infratil fell 8c to 265.

- NZPA