NZ stocks: Market eases despite Telecom effort

Despite healthy gains by market leader Telecom, the sharemarket slackened to its first soft finish this week as profit takers realised recent gains among other top stocks.

The benchmark NZSX-50 gross index closed 2.46 points or 0.07 per cent lower at 3321.23 while the NZSX all capital index closed 1.09 points lower at 1042.84.

"If it wasn't for Telecom, then the market would be down a reasonable amount," Hamilton, Hindin, Greene broker Grant Williamson said.

"A lot of investors are just starting to get a wee bit concerned about economic data going in the complete opposite direction to the strength of the sharemarket. People are now starting to take some profits on stocks that have had a pretty good run in the last month or so."

Telecom closed 6c higher today at 627, it's highest close since late March. It has been bid up in recent sessions as investors position themselves for the company's August 5 annual result at which it is expected to announce a special dividend or capital repayment.

Among other top stocks Auckland International Airport -- up 2c to 234 and Carter Holt Harvey -- up 3c to 237 were the only ones to make ground.

Number two stock Contact Energy was down 2c to 788, Fisher & Paykel Appliances was down 2c to 359, Fletcher Building was down 12c to 688, Sky TV was down 9c to 596 and Sky City was down 6c to 488.

Energy company Trustpower closed unchanged at 600 on slim turnover. Today US energy company Alliant Energy Corp said it was "evaluating" its stake in TrustPower. It owns a little less than a quarter of the company. Infratil which also owns a significant stake in Trustpower was up 2c to 392.

Elsewhere in the energy sector, NGC Holdings closed 10c lower at 384.

Shares in BIL International remained in a trading halt today pending an announcement. Hong Kong property group Guoco is reported to be preparing a full buy-out offer for the former investment vehicle of corporate raider Sir Ron Brierley -- in a deal that would value the company at as much as to US$1.8 billion ($1.62 billion).

Juice company Charlie's made its market debut today through its back door listing via Spectrum resources. It eased 2c to 13. "It's still a penny dreadful, it's got a long way to go to get on the radar screen of most brokers," Mr Williamson said.

BIL International which has its primary listing in Singapore last traded at 104 in New Zealand. The bulk of its fairly numerous New Zealand shareholders have small stakes in the company.

"Still no word on what's happening there, certainly there's speculation there's going to be an offer around the $1.13 mark but nothing solid at this stage," Mr Williamson said.

The market was little affected by Consumer Price Index data showing inflation came in at 2.8 per cent in the June year -- at the top end of the Reserve Bank's 1-3 per cent target band and as expected.

There were 45 rises and 62 falls among 159 stocks traded today and total turnover was worth $115.95 million.

- NZPA