NZ stocks: Shares retreat as Telecom and Carter Holt soften

12.45pm

The New Zealand sharemarket's benchmark index retreated from last night's closing high this morning as top stocks Telecom and Carter Holt Harvey traded lower.

By midday the NZSX-50 gross index was down 9.29 points or 0.35 per cent to 2639.48, while the NZSX all capital index was down 2.68 points or 0.3 per cent to 892.31.

Turnover by 11.30am was worth $40.56 million and rises outnumbered falls 39 to 36 on 122 stocks traded.

ASB Securities Andrew Kelleher said market leader Telecom's 3c fall to 576 had likely dragged the NZSX-50 lower. He said he wasn't aware of any major reason for the telco's dip.

Also contributing to the market's softer tone was Carter Holt Harvey which yesterday posted a reduced first quarter result and by midday was down 5c to 216.

Mr Kelleher said the stock was still suffering from "a little bit of indigestion from yesterday's result".

"I'm putting that down to profit taking because it had probably run ahead of itself a little bit."

Across the rest of the top 10 it was something of a mixed bag with Auckland International Airport up 2c to 672, Contact Energy up 4c to 577, Fletcher Building down 3c to 460, Sky City up 2c to 448, and Sky TV up 7c to 529.

Insurer Promina was up strongly, gaining 14c to 440. Tower Group, which continues to be the subject of takeover speculation, was down 1c to 167.

Elsewhere on the market Mr Kelleher said there were "a few penny dreadfuls moving around a little bit".

Stocks to move by 11.30am included: Dorchester Pacific down 7c to 285, Fisher & Paykel Appliances down 2c to 436, Guinness Peat Group down 2c to 228, Michael Hill up 2c to 597, NZX down 5c to 960, Sanford up 10c to 500, Skellmax up 3c to 127, Telstra down 5c to 550, Tenon down 2c to 194, and Tourism Holdings Ltd up 3c to 162.

- NZPA