NZ Stocks: Stocks break eight-day winning streak

The sharemarket ended its recent good run yesterday, unable to sustain a ninth consecutive day of rises.

The NZSE-40 capital index fell 15.51 points, or 0.77 per cent, to 2004.72, and the small companies' NZSE-SCI capital index was down 0.87 points at 5204.77.

Total turnover of 46.21 million stocks valued at $177.54 million was largely on the back of Fletcher Energy ($69.07 million), Telecom ($42.27 million) and Montana ($15.87 million).

David Price, of Credit Suisse First Boston, said the market was taking a breather, awaiting word today on whether the Reserve Bank will change the official cash rate.

"[The NZSE] has had a fairly strong run since the start of the year," Mr Price said.

"Telecom traded up to $5.95 on Monday, it is continuing to see a bit of profit-taking - that stock has been very, very strong [this year], it's the main liquid stock in the index."

Telecom lost 8c at $5.75, and Telstra shed 15c to $8.70.

"Fletcher Energy was off a little, Capstone stock fell overnight, and it was mixed across the board," he said.

Fletcher Energy dipped 7c to $8.83, Forests lost 1c to 32c and Building gained 1c to $2.28.

Contact Energy rose 5c to $2.85 following the announcement on Monday that it would not pursue a resolution seeking shareholder approval for an increase in directors' fees at next week's annual meeting.

"I wouldn't say in monetary terms it's that material but it's a goodwill gesture. The stock is cheap, it's one of the leaders that could be rerated [up] further from here," Mr Price said.

Carter Holt Harvey, expected to report a lower third-quarter profit today, fell 5c to $1.62.

The Warehouse was down 15c at $5.45, amid speculation in Australia that US retail giant Walmart was considering entering the market. The market is also awaiting the release of The Warehouse's second quarter sales figures on February 7.

Montana was strong on big volume, rising 13c to $4.05, on turnover of 3.93 million shares. One parcel of 3.65 million went through at $4.05.

Fisher and Paykel was up 5c at $7.90, Baycorp rose 10c to $12.80, Sky TV gained 16c to $3.66 and Sky City was up 14c at $8.89.

Infratil rose 3c to $1.23 after announcing on Monday that it had bought Glasgow's Prestwick Airport.

INL shed 9c to $3.46, Ports of Auckland was down 10c at $4.40, Auckland Airport lost 8c at $3.37 and Frucor was down 6c at $1.86.

- NZPA