NZ stocks: Sharemarket slides on mixed trading

The major sharemarket index closed marginally lower today, after a mixed day's trading.

The benchmark NZSX-50 gross index was down 2.72 points at 2678.94, while the NZSX-All capital index fell 0.53 points to 900.41.

Bellwether stock Telecom edged up 1c to 583, on turnover worth $22.7 million. Total market turnover was worth $79.3 million. Of the 153 stocks traded there were 48 rises and 50 falls.

Recent star performer, Fletcher Building, fell 11c to 470. Yesterday, the New Zealand Institute of Economic Research reported a net 49 per cent of firms in the building supplies sector were pessimistic about their prospects in the coming six months.

First NZ Capital's Barry Lindsay said Fletcher Building's drift down was likely to be a case of investors locking in profits from recent price rises for the stock, which hit a 12 month high of 486 yesterday.

Dominion Finance listed today at an issue price of 100. The stock traded between 102 and 107 during the day, before closing at 105. Mr Lindsay said the 440,800 shares traded was a low number for a new stock, indicating that many investors had bought in for the long haul rather than a short-term profit.

Mr Lindsay said banking stocks were pulled down today by negative sentiment out of Australia. Banking stocks lost favour across the Tasman today on the back of an announcement by National Australia Bank its cash earnings for the September half are expected to be 10 to 15 per cent lower than in the first half.

Australian-owned ANZ fell 15c to 2000, while Westpac fell 10c to 1815.

Meat processor Richmond was up 8c at 320. The company was placed in a trading halt for part of the session in the lead up to its announcement it would use some of its $5.3 million of imputation credits to make a 22 cents a share dividend payment if PPCS succeeds in its takeover offer.

ABN Amro Craig's Bryon Burke said the dividend made the PPCS takeover bid more attractive, as when added to the $3.11 per share PPCS was offering, Richmond shareholders would end up with $3.33, well above the current share price.

Pacific Retail Group rose 4c to 209. The company has said it was still undecided to sell its retail chains, including Bond & Bond and Noel Leeming, and computer chain Big Byte, via a trade sale or float. But newspaper ads appeared today for a public share offer.

Other stocks on the move today included: Turners Auction up 5c at 510, TrustPower up 4c at 489, Toll NZ up 9c at 187, Carter Holt Harvey up 1c at 297, Cavalier up 10c at 500 and Michael Hill Jeweller up 11c at 606.

- NZPA