NZ stocks: Shares fall as investors take profits

6.00pm

The sharemarket fell in typically weak Monday trading today, amid some profit taking and a lack of corporate news.

Goldman Sachs JB Were broker Murray Rutherford said there didn't seem to be anything particular driving the broad market weakness. "I think we had a very strong run last week and we are seeing a little bit of profit taking today basically," he said.

The benchmark NZSX-50 gross index fell 17.52 points to 2734.40, while the NZSX-All capital index fell 5.83 points to 911.77.

Top stock Telecom drifted lower, down 3c to 562, on turnover worth $11.26 million. Of the 153 stocks traded today there were 42 rises and 55 falls.

Total market turnover was worth just $46.7 million.

Other top stocks to fall today included Carter Holt Harvey, down 2c at 232, Fletcher Building which rose 11 per cent last week fell off 15c to 565, and Contact Energy down 5c at 580.

Shortly before the market closed today Contact announced it had received a takover offer from Origin Energy, which bought a cornerstone 51.2 per cent in the company in July.

Under New Zealand's takeover law Origin was obliged to offer the same $5.67 per share to Contact's remaining shareholders.

Tenon rose 2c to 207. On Friday it announced it was looking to sell its structural timber business. The flagging of a formal sale process came after speculation that Carter Holt Harvey and Weyerhaeuser had been talking to the company. Tenon said it would not entertain a sale unless it felt it would receive "a very full and fair value for the business".

The Warehouse continued to falter after its disappointing full year result, which was released Friday. It fell another 7c to 428 today after losing 8c on Friday on the back of its result.

Australian business losses had dragged down The Warehouse's net profit by 18.9 per cent to $61.2 million for the July year. This followed an 8 per cent drop the previous year.

Other stocks on the move today included: Sky City Entertainment down 9c at 455, Sky Network TV up 4c at 535, Auckland International Airport down 3c at 708, Lion Nathan up 8c at 747 and Ports of Auckland down 29c to 670.

- NZPA