NZ stocks: Sharemarket starts the week in the red

12.20pm

The sharemarket dipped into the red in trading this morning.

By 11.30am the benchmark NZSX-50 gross index was down 9.28 points at 2621.87, while the NZSX-All capital index was down 2.25 points at 888.43.

Telecom was down 3c at 563 on turnover worth $23.2 million.

Trade in the bellwether stock made up the bulk of the market's early turnover of $34.9 million.

Of the 126 stocks traded by 11.30am there were 23 rises and 40 falls.

ABN Amro Craig's Matt Willis said the local market seemed to be following the sluggish pace set by international markets on Friday.

"All of a sudden the focus of investors both locally and abroad seems to be interest rates and the moving landscape of the interest rate environment," Mr Willis said.

He said investors could be using the excuse of the 25 basis point interest rate hike last week to take some money off the table.

"To a degree it will be kneejerk and ...an excuse to take some profit out of this market," he said.

The stock exchange operator NZX was up 12c at 930. A swag of new rules comes into effect on the stock exchange today. The company also announced on Friday it was looking into setting up its own in-house share registry business.

Other stocks on the move by 11.30am included: Sky Network TV down 5c at 545, Sky City Leisure down 4c at 84, Tenon down 1c at 193, Michael Hill Jeweller down 2c at 575, Trustpower down 4c at 416, Turners Auctions down 2c at 478, Contact Energy down 3c at 577, Fisher & Paykel Appliances down 1c at 474, Independent Newspapers Ltd down 3c at 502, Powerco up 3c at 218, and The Warehouse down 1c at 435.

- NZPA