The New Zealand sharemarket closed slightly lower today with profit-taking on Telecom and other top stocks combined with a profit warning from The Warehouse outweighing continued gains by Contact Energy and Fletcher Building.
The market "faded through the afternoon after starting off reasonably mainly thanks to Contact Energy which offset The Warehouse," ASB Securities' Stephen Wright said.
The benchmark NZSX-50 gross index ended 2.93 points lower at 3078.64 having traded as high as 3088 shortly after midday.
The NZSX all capital index closed 1.08 points lower at 1012.35.
Market heavyweight Telecom closed 6c lower at 618c while among other top stocks Carter Holt Harvey was down 2c at 208, Fisher and Paykel Appliances was down 7c to 418c, and Sky City was 3c lower at 520. But Mr Wright said this was likely profit taking and not indicative of a clear trend.
In what has become an unpleasantly familiar event for investors, listed retailer The Warehouse said it expected to post a reduced first half net profit on the back of disappointing Christmas sales.
That quickly sent its shares down 9c to 350c, their lowest level in a year. However, by the close of trade they had recovered to end at 358c -- a cent lower than yesterday's close.
Greenslades broker Paul Valk said The Warehouse's statement was still more bad news for a stock already under pressure.
"It's certainly not a stock that encourages buying," he said.
"I think we'll see fund managers have a good think about their holdings (in The Warehouse) and tomorrow's trade will be telling."
On the upside, Contact Energy and Fletcher Building posted good gains and new closing highs with Contact up 12c to 664c and Fletcher up 15c to 677.
Contact's share price has this week benefited from speculation about a capital return to investors, while Fletcher Building has risen on prospects it will bid for Australian firm CVC Amatek.
Overall turnover remained fairly restrained at $86.00 million worth and stocks falling out numbered those rising 61 to 52 among the 162 traded.
AMP up 20c to 840, Baycorp Advantage down 10c to 330, Briscoe Group down 2c to 116, Gullivers Travel up 6c to 152, MediaWorks up 4c to 244, Mooring Systems up 20c to 455, Promina down 7c to 582, Pumpkin Patch up 5c to 299, Telstra down 7c to 526 and Tower up 5c to 210 .
- NZPA
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