NZ stocks: Telecom leads market in downward charge

The New Zealand market had a mixed day today, although an ex-dividend Telecom led the charge down during the session.

The benchmark NZSX-50 gross index was down 6.50 points, or 0.29 per cent, at 2208.41, while the top-40 index was down 0.46 per cent at 2126.91.

Topping turnover of 25.66 million stocks valued at $71.099 million was Telecom's $21.77 million worth of stocks changing hands.

Richard Burton of Forsyth Barr Frater Williams said the New Zealand market had been depressed by Telecom, which overshot its quarterly 5c dividend today to close down 12c at 493.

However, it remained above its recent three-month low of 487, on August 25.

The market was likely to see a similarly quiet day tomorrow with the United States on holiday to mark Labour Day.

Stocks to fall today included Sky TV, down 2c at 473, casino company Sky City, down 2c at 895, Fisher & Paykel Healthcare, down 5c at 1225, Fletcher Building, down 4c at 416, and Contact Energy, down 5c at 490.

Baycorp Advantage lost 8c to 237 after its shares reached a seven-month high on Friday following the company's announcement it expected to be profitable next year.

Baycorp, Australasia's largest credit checking company, posted a loss of A$19.4 ($21.87) million in the June year, from a loss of A$300 million the previous year.

Tranz Rail was down 1c at 98, still above the 95c per share offer from Australian suitor Toll Holdings, and Waste Management lost more than its 7.5c per share dividend today to close down 10c at 370.

The financial sector put in a mixed performance, with Westpac down 60c at 1625, ANZ down 25c at 1965, and Tower up 2c at 124.

AMP, the subject of an unsuccessful midnight raid last week by National Australia Bank, was up 30c at 75.

Recently listed Promina, spun off from British parent Royal & SunAlliance earlier this year, was up 5c at 335.

"Promina's been a fantastic stock," Mr Burton said.

"It was always underpriced - no-one wanted the sector but it had been rationalised, and (Promina) started to have some pricing power in the insurance sector, so it's been a good performer."

On the rise were Auckland International Airport, up 5c at 635, retailer Briscoe Group, up 5c at 183, Air New Zealand, up 2c at 53, Guinness Peat Group, up 2c at 168, Independent Newspapers, up 2c at 438 after launching its takeover of Sky TV last week, and Nuplex, up 13c at 398.

There were equal numbers of falls and rises - 43 - among the 136 stocks traded.

- NZPA