The sharemarket managed a nearly flat close today, despite lead stock Telecom struggling after it shed its dividend.
Telecom finished 8c off at 475 but near its session high, having gone ex-dividend by 5c for the quarter.
The stock, which got a boost on Friday from an increased weighting in the Morgan
Stanley Capital Index (MSCI) for local stocks, traded as low as 466.
The NZSE capital index dropped 1.65 points to 1952.46 while the top 10 index eked out a 0.54-point gain to 880.67 while the small stocks index closed up 0.79 to 5574.64.
Turnover was $71.5 million.
Most of other stocks in the MSCI were sold on Friday after they were reweighted down, but Salomon Smith Barney broker Craig Robins said they may have been oversold.
No 2 stock Carter Holt Harvey stepped ahead with a 4c gain to 175. It was also buoyed by optimism about world growth.
Others to rebound were The Warehouse, up 9c to 720, Fletcher Building, 6c to 326 and Independent Newspapers, 8c to 294.
The market's tone wasn't helped by a sour finish to the week on Wall Street on Friday where stocks fell amid fears of a possible bankruptcy at UAL Corp's United Airlines, the second-largest US airline which is Air NZ's Star Alliance partner.
Westpac NZ dropped 40c to 1455 after shedding its 40c dividend.
Fletcher Forests dropped the equivalent of 8c following its five-for-one consolidation, closing at 97c, having closed on Friday at 21c.
Auckland Airport finished 6c up at 522. Much focus will be on the stock this week with the bookbuilding exercise due for completion on Wednesday and the Auckland City Council due to make its decision on Thursday on selling its 25.7 per cent stake.
UBS Warburg broker Richard Leggat said the key to Auckland Airport was overseas arrivals and although the proposed combining of much of Qantas and Air New Zealand's Auckland operations appeared negative, the promise of 50,000 extra tourists was an offset.
"Losing Qantas domestically, which is likely to happen, and that would be a small negative but that would probably be compensated for by having a stronger 'main tenant' in Air NZ/Qantas and you would get more overseas arrivals."
There was also the prospect of Virgin Blue operating in New Zealand.
Others in the top 40 to prosper included AMP, up 13c to 1470, Fisher & Paykel Appliances, 5c to 1060 and Ports of Auckland, 5c to 645.
There were 48 rises and 40 falls on 129 stocks traded.
- NZPA
The sharemarket managed a nearly flat close today, despite lead stock Telecom struggling after it shed its dividend.
Telecom finished 8c off at 475 but near its session high, having gone ex-dividend by 5c for the quarter.
The stock, which got a boost on Friday from an increased weighting in the Morgan
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