NZ stocks: Telecom fall drags down market

The New Zealand sharemarket felt the repercussions of a poor Friday on Wall St, with market leader Telecom leading the charge into negative territory.

The NZSX-50 gross index was down 6.72 points, or 0.30 per cent, at 2216.65 while the top-40 capital index was down 0.40 per cent at 2139.47.

Turnover of 17.76 million stocks, valued at $40.15 million, was topped in volume by Tranz Rail's 3.24 million stocks.

Barry Lindsay of First NZ Capital said the low-turnover day had few highlights. "Fairly featureless and the index edged back marginally ...

"It was probably always going to be a slightly down-day just by virtue of the fact that Wall St closed on Friday down about 1 per cent," Mr Lindsay said.

Market leader Telecom closed down 3c at 511, while fellow blue chip stock The Warehouse was down 10c at 500, continuing its punishment since disappointing investors with its annual result last week.

The discount giant announced an 8.3 per cent fall in profit on Friday to $75.4 million, a result largely in line with previous guidance to the market but showing the effects of a competitive sector and problems with its Australian operations.

Air New Zealand retreated 1c to 60, following on from a large gain last week on increased speculation the Commerce Commission will approve its proposed alliance with Qantas.

"The fact it only peeled back once cent shows ongoing interest in that stock after its strong gain," Mr Lindsay said.

The stocks going ex-dividend were Turners Auctions (8cps), down 3c at 385; Capital Properties (1.9cps), down 2c at 87; NGC Holdings (5cps), down 5c at 157; Colonial First State Property Trust (2.17cps), down 1c at 99; and Steel & Tube Holdings (12cps), down 24c at 342.

Tranz Rail was up 1c at 108, approaching its offer price from Toll Holdings of 110, Wrightsons gained 2c to 142, Hellaby Holdings was up 4c at 484, Fisher & Paykel Appliances gained 5c to 1450, Auckland Airport rose 2c to 640, and ANZ was up 15c at 2015.

On the down side, Fletcher Building lost 1c to 412, Contact Energy was down 1c at 477, F&P Healthcare shed 2c to 1206, and AMP lost 29c to 745.

There were 57 falls and 36 rises on the 139 stocks traded.

On Wall St the blue-chip Dow Jones industrial average dropped 84.56 points, or 0.88 per cent, to 9503.34; the broader Standard & Poor's 500 Index fell 6.6 points, or 0.64 per cent, to 1021.37; and the technology-laced Nasdaq Composite Index was down 10.85 points, or 0.58 per cent, at 1858.12.

- NZPA