NZ stocks: Telecom, market succumb to profit taking

12.00pm

After three strong days, market gorilla Telecom succumbed to profit taking today, taking the benchmarket index with it.

Having hit a 40-month high of 614 yesterday, the bellwether stock that has a 28 per cent weighting in the top 50 index, fell back 10c to 603. It completely dominated the early trading, which was light, at $18 million of the $33m total market turnover.

Number 2 stock Carter Holt Harvey continued to suffer following its poorly received result yesterday. It dropped 4c yesterday and another 2c today, taking it to 213.

The company posted a $496m June half year net profit, of which $440m was a gain on the sale of its tissue business. Shareholders also approved a $480m return of capital yesterday but it was insufficient to keep them happy.

Brokers said the company's profit was inflated by currency gains and the underlying profit failed to impress. Also, the company had failed to update the market on the potential sale of its forestry assets, as many in the market had hoped.

The benchmark NZSX-50 gross index was down 15.34 points to 2742.25 at 11.35am. The NZSX-All capital index was off 5.42 to 921.57.

Other leaders to succumb to profit taking included Fletcher Building, down 4c to 485, and Fisher & Paykel Appliances, down 5c to 480.

The Warehouse, initially built on its recovery, registering its eighth straight gain, but then eased back to 1c down on yesterday's close at 431. It has risen 8 per cent from 402 on July 13.

Going against the trend, Independent Newspapers added to yesterday's 4c rise with another 7c, to hit 470. Its two thirds owned Sky TV rose 2c to 515.

Fisher & Paykel Healthcare rose 7c to 1319 and continues to perform well following its new product announcement this week -- a humidification system to assist keyhole surgery.

AMP nudged back above $7 with a 3c gain to 703.

Hellaby continued its impressive form, gaining 9c to 539.

Sanford rose 6c to 440 and Michael Hill rose 5c to 610.

There were 23 stocks up against 26 down among the 105 traded.

- NZPA