NZ stocks: Slump in confidence drags down shares

News that confidence amongst New Zealand companies is at a 17-year low saw the New Zealand sharemarket lose more than half a per cent in morning trade today.

Led lower by top stocks Telecom, Fletcher Building and The Warehouse, the benchmark NZSX-50 gross index was 16.57 points or 0.55 per cent lower at 3026.19 by 11.30am, while the NZSX all capital index was down 6.03 points to 962.34.

Direct Broking's Peter Lynds said the market's losses were a reaction to the National Bank's May Business Outlook and also a sharp decline in April building consents.

"It's just reinforced what had been said previously and perhaps reinforced it a bit too far," he said. "Whilst the market was sold down initially, it has steadied off."

Market leader Telecom was down 6c to 596, while The Warehouse, which gained 15c yesterday on speculation it may be a takeover target for Australia's Woolworths, gave up 5c of that and was trading at 325.

The biggest loss among the blue chips this morning was Fletcher Building -- down 11c to 637, tripped up by the building consents data.

Mr Lynds said despite the market's lurch lower, trade was overall fairly quiet. Total turnover was worth $26.43 million and there were 24 rises and 36 falls among 116 stocks traded.

With both Wall St and London closed last night for holidays there was little influence from overseas.

Meanwhile, fast food operator Restaurant Brands was unchanged at 128 despite saying its first quarter same store sales were down 1.5 per cent.

Auckland International Airport down 3c to 205, Carter Holt Harvey down 2c to 180, Fisher & Paykel Appliances down 3c to 308, Mowbray Collectables down 40c to 140, Pumpkin Patch down 3c to 275, Sealegs up 9c to 27, Tenon up 5c to 350 and Waste Management down 9c to 620.

- NZPA