NZ stocks: Telecom keeps sharemarket's nose above water

A 3c rise to 556 by market leader Telecom kept the New Zealand sharemarket just above water in morning trading today.

In uneventful business by 11.30am, the NZSX-50 benchmarket index was up 4.56 points or 0.19 per cent at 2433.63, and the NZSX 40 capital index was up 3.86 points or 0.17 per cent at 2246.42.

Turnover was a solid 12.33 million shares worth $42.40 million of which some $20 million was in Telecom.

Among other leading stocks Contact Energy was up 5c at 516 and Fisher & Paykel Healthcare was down 5c at 1240.

Jewellery chain Michael Hill was down 3c to 532 after a good run this week in the wake of its result.

Agricultural equipment manufacturer Skellmax was down 3c at 127 after it posted a December half year net profit of $6.19 million compared with $6.31 million a year earlier. It said it expects a full year profit in line with last year as previously indicated.

NZ Experience fell 3c, 10 per cent, to 32c on a small parcel of shares.

The Warehouse fell 4c to 462, its lowest point since July, as selling continued in the wake of its sales report this week when it said margins had been squeezed and Australian operations would remain problematic for some time.

Fletcher Forests rose 2c to 136 following its result yesterday. It stuck to its $46 million profit forecast for its processing and distribution businesses and ruled out their sale after reporting an interim loss of $26 million including the $38 million after-tax writedown on its forests and $35 million of costs associated with their sale.

There were 29 rises and 33 falls among the 101 stocks traded by 11.30am.

US stocks fell as investors locked in gains from the previous session after disappointing jobless claims data and lackluster earnings news.

The Dow closed down 43.63 points, or 0.41 per cent, at 10,694.07. The Standard & Poor's 500 Index ended down 5.65 points, or 0.49 per cent, at 1,152.11. The technology-focused Nasdaq Composite Index finished the session down 16.06 points, or 0.77 per cent, at 2,073.60.

- NZPA