NZ stocks: Sharemarket softens, led down by Telecom and Sky City

12.15pm

After a steady start the sharemarket softened in quiet trade today, led by falls in top stock Telecom and Sky City Entertainment.

By 11.35am today the benchmark NZSX-50 gross index was down 5.80 points to 2734.80, while the NZSX-All capital index had fallen 1.94 points to 917.75.

Telecom was down 4c at 580 on turnover worth $14.1 million.

ABN Amro Craig broker Bryon Burke said the fall in Telecom, which is down to its lowest level since early July, was surprising. He said despite a good financial result in early August and change in dividend policy to increase its payouts, the stock has fallen steadily in recent trading.

Sky City Entertainment fell 5c to 448, continuing to fall after Wednesday reporting a 6.1 per cent fall in annual net profit.

Total market turnover by 11.35 am today was worth $28 million. The 33 rises outnumbered 30 falls among the 118 stocks traded in the time.

Main movements were flow-ons from recent financial results or corporate news.

Pyne Gould Corporation Ltd (PGC) was up 2c to 602, after it today announced a 62 per cent lift in its full year net profit to $25.96 million.

NGC Holdings was up 3c to 301. Yesterday the energy company's 66 per cent owner, Australian Gas Light (AGL), confirmed it was looking to sell its stake.

Investors reacted positively to Auckland International Airport's 13 per cent rise in annual profit announced yesterday, pushing the stock up 9c to 737 this morning.

Air New Zealand was unchanged at 186, after yesterday upping its fuel surcharge.

Sky Network TV was up 5c at 537, while its parent Independent Newspapers Ltd had risen 1c to 501.

Other stocks on the move by 11.35am today included: Carter Holt Harvey down 1c at 247, Contact Energy up 1c at 578, Williams & Kettle down 5c at 300, Vertex up 9c at 175, Lion Nathan up 9c at 777, Infratil down 2c at 310 and Nuplex up 2c at 512.

- NZPA