NZ stocks: Market suffers slight drop

Fisher and Paykel Healthcare lost share value after worse-than-expected revenue growth, while Telecom and Fletcher Building regained lost value on share market today.

The benchmark NZSX-50 index closed down 0.22 per cent, or 6.12 points, at 2734.08 points. Turnover was 49.7 million shares, worth $84.9m.

There were 27 rises and 48 falls in the 117 stocks traded.

Fisher and Paykel Healthcare's share price fell sharply, after the company announced its operating profit for the year to the end of March, ASB Securities' head of advisory Stephen Wright said.

"I think people were not happy with the revenue growth in US dollar terms, and the outlook for 2010. Again, revenue growth was lower than expected, and the forecast growth was lower than expected," he said.

Fisher and Paykel Healthcare dropped 20c, down 6.7 per cent, to 287, after announcing its operating profit for the year to the end of March rose 76 per cent to $102.4m.

Telecom and Fletcher Building dragged the market up, though there were still more stocks losing than gaining, Mr Wright said.

Telecom traded at 258, up 12c or 4.9 per cent . It was also the most traded, with 8.6m shares traded for $21.5m.

Fletcher traded at 634, up 7c or 1.1 per cent.

Contact Energy was down 4c to 580 and Sky City fell 2c to 285.

Shares in NZX trading heavily ahead of its rights issue announcement, up 3.5 per cent or 30c to 880, while Nuplex lost momentum - falling by 3c or 6.3 per cent to 45.

Markets in the United States and Britain were closed overnight, but European shares rose, with some analysts choosing to interpret a leading German economic survey positively.

Weaker-than-expected readings for Germany's Ifo business climate index of the German business sector suggested that the nation's firms continue to struggle.

But the expectations index came in at 85.9, higher than forecasts for 85.5.

The FTSEurofirst 300 index of top European shares rose 0.2 per cent to 857.71 points, after two days of losses.

- NZPA