NZ sharemarket ends slightly lower

File photo / NZH

Telecom bucked the trend in the New Zealand sharemarket today, rising 5c to 211 ahead of its first quarter result tomorrow.

Otherwise many stocks encountered profit-taking and exporters came under pressure as the NZ dollar rose to levels not seen since 2008 in the wake of a stronger than expected September quarter employment report.

TrustPower fell 24c to 739 after reporting a fall in interim earnings in difficult market conditions.

The benchmark NZX-50 index closed down 6.823 points, or 0.205 per cent, at 3326.251.

"The market has had a few good days and Telecom is playing a bit of catch up. It bucked the trend today," said Grant Williamson, director at Hamilton, Hindin, Greene.

TrustPower has a reputation for increasing profits on a six monthly basis and it had not managed to do so this time.

Contact Energy, down 8c at 592, and Fletcher Building, down 9c to 813, were among the stocks favoured by profit-takers.

Companies under pressure from the high currency included Fisher & Paykel Healthcare, which was down 9c at 311. Tourism Holdings fell 2c to 76 and Sanford fell 5c to 455. Rakon fell 2c to 128.

SkyCity still managed to build on recent gains, rising 1c to 320, as did Ebos, up 3c at 745 and Nuplex, up 2c at 355.

Hellaby rose 2c to 199 and Air NZ rose 1c to 137.

Auckland Airport fell 1c to 214, The Warehouse fell 2c to 385 and Hallenstein Glassons fell 5c to 450.

Smiths City fell 2c to 36 after reporting second quarter sales were down 11.5 per cent.

New Zealand Experience fell 4c to 35.

Allied Workforce rose 8c to 120 and Turners Auctions rose 6c to 140.

The Federal Reserve committed to buy $600 billion ($785 billion) more in government bonds by the middle of next year. The decision, which takes the Fed into largely uncharted waters, was aimed at further lowering borrowing costs for consumers and businesses still suffering in the aftermath of the worst recession since the great depression.

The size of the plan was greater than had been anticipated but less than many hoped.

The resulting trend of a weak US dollar is expected to continue, keeping the NZ dollar well bid.

In the US, stocks ended a volatile session modestly higher.

Both the Dow Jones industrial average and the Nasdaq Composite Index closed at levels not seen since 2008 while the Standard & Poor's 500 Index ended at a six-month high.

The Dow Jones was up 0.2 per cent at 11,215.13, the Standard & Poor's 500 Index was up 0.4 per cent at 1197.96, and the Nasdaq Composite Index was up 0.3 per cent at 2540.27.

Strong gains by Republicans in the US mid-term election was seen as opening the way for a more business friendly government.

- NZPA