NZ Stocks: Sharemarket starts week on low note

12.00 pm

The New Zealand sharemarket was lower this morning as Telecom suffered on the back of fairly cool sentiment on telcos globally.

By mid-morning the NZSE-40 capital index was down 10.78 points, or 0.53 per cent, at 2032.68, with minimal turnover of 7.30 million stocks valued at $19.66 million.

Telecom began the week on a five month low, down 10c at 508, topping turnover with $6.36 million.

Nigel Scott of ABN Amro said the telco sector offshore was not negative, "but it's not coming from a positive story globally".

Carter Holt Harvey, up 1c at 171, reports its first quarter earnings tomorrow, expected to reveal a tough period for the country's largest forest owner.

In April, Carter's announced a 17 per cent rise in net profit for the year ended March 31, but predicted difficult trading conditions for the first half of this year.

Winemaker Montana was unchanged at 450, while bidder brewer Lion Nathan was up 8c at 550. The Takeovers Panels meets today over whether Lion's offer on Montana constitutes a full takeover, while the Montana Standing Committee is to decide if Lion's selldown of 19 per cent of defaulter shares is according to the terms set.

Tower, which goes ex-dividend today by 14c, was down 10c at 515.

Elsewhere on the market, Fletcher Building was up 1c at 259, Powerco gained 4c to 179, Contact Energy was up 1c at 315 and Fletcher Challenge spin-off Rubicon rose 1c to 73.

Casino company Sky City was down 6c at 1184, pay TV operator Sky TV lost 5c to 320, part owner Independent Newspapers Ltd was down 5c at 385, Telstra shed 10c to 655 and Sanford lost some of last week's gains shedding 5c to 680.

There were 32 falls and 26 rises on the 102 stocks traded.

"If you take out (Telecom's fall), then a lot of companies are touching up against valuation terms and awaiting further news, like Rubicon's share buy back," Mr Scott said.

Air New Zealand was unchanged after its announcement on Friday that it had presented a submission to the Government seeking approval for Singapore Airlines to raise its stake. Air NZ A shares were at 109 and the Bs were at 145.

Chemicals maker Nufarm, down 15c at 366, announced on Friday it will take a $A50 million ($NZ63.2 million) one-time charge on its loss-making Canadian unit and expects profit to be below earlier expectations.

Nufarm, formerly Fernz, was listed in the NZSE's top ten before moving its head office and primary listing to Melbourne in January last year. It is Australia's largest agricultural chemicals maker.

- NZPA