Telecom pulled an otherwise positive sharemarket down yesterday afternoon.
The NZSE-40 capital index ended down 17 points at 2069.05, with market heavyweight Telecom losing 13c to $5.50.
Rising stocks outnumbered fallers 53 to 43, with 141 stocks traded.
Smaller stocks gained, the NZSE-SCI capital index rallying 25.91 points to 5514.60.
Total market turnover of
29.74 million shares was worth $70.93 million.
Peter Stokes of JBWere said profit taking from Friday's 4 per cent rise in Telecom and weakness in the Australian sharemarket, which was down 1.5 per cent, probably accounted for its decline.
Montana was down 15c at $4.90. British drinks giant Allied Domecq said it was considering a fresh bid to comply with new takeover rules.
The Takeovers Panel placed a restriction on share buying following Allied's attempt on Friday for an exemption from the new takeovers code by making a binding offer to shareholders prior to the tougher rules taking effect.
Meanwhile, Lion is seeking 11 per cent of Montana to put it in a controlling position, paying $5.50. It said it would buy the rest at $3.70 - effectively offering to buy Allied's stake at that price.
Lion Nathan finished down 9c at $5.40.
Elsewhere, TrustPower lost 35c to $3.30 after competing takeover bidders failed to reach an accommodation before Sunday's new rules.
However, Mr Stokes said much of the damage was done by a small, late trade. The volume weighted average price for the day was higher at $3.58.
The market continued warming to Rubicon, initially seen as a dumping ground for Fletcher Challenge assets when it was broken up this year. Last week, Rubicon announced big gains on the sale of the Challenge petrol retail chain and Queensland storage tanks. Rubicon rose 4c to 74c.
Air New Zealand firmed as a Government verdict on raising foreign ownership caps to increase cash-rich Singapore Airlines' holding looms, Mr Stokes said.
The domestic A shares rose a cent to $1.10 and the Bs, which foreigners can own, were up 2c at $1.47.
Fletcher Forests was up a cent at 31c following a newspaper report at the weekend that the Chinese joint venture partner in the Central North Island Forestry Partnership, Citic, wanted to buy the partnership's assets.
Among other leading stocks, Brierley Investments was up 2c at 68c, Carter Holt rose 2c to $1.72, and Contact was up 2c at $3.02.
Fisher & Paykel rose 5c to $11.85, Sky City added 4c to $10.94, and Sky TV fell 10c to $3.30.
The Warehouse dropped 5c to $5.40, Tower rose 5c to $5.25, and Natural Gas eased a cent to 87c.
Port of Tauranga rose 6c to $6.76, and Advantage Group recovered 5c to 57c on moderate volume.
- NZPA
