NZ stocks: Contact Energy drags sharemarket down

The sharemarket tiptoed lower this morning in quiet trading, led down by No 2 stock Contact Energy, brokers said today.

"It's been quiet. Turnover is pretty low -- not much change from Monday or Tuesday, and a mixed market," ASB Securities broker Stephen Wright said.

He said that the US Fed's decision to raise interest rates "hadn't helped", but had had "minimal affect".

Shortly after 11.45am, the benchmark NZSX-50 index was down 4.94 points at 2994.03.

Shares in market heavyweight Telecom were unchanged at 612, while those in Contact Energy dropped 7c to 686.

A unit of Contact, electricity retailer Empower, was fined $30,000 for breaches of the Fair Trading Act by the Commerce Commission. However, Mr Wright said he thought it was more to do with profit-taking than the fine.

Ahead of Telecom's quarterly results on Friday, Mr Wright said he expected good growth in the broadband sector, "and of course people will look at the mobile figures.

"We're happy enough with Telecom's progress. We're expecting to inch forward."

The NZSX-All capital index was down 1.62 points at 958.81.

Morning turnover was 11 million, valued at $36 million, including $19.6m worth of Telecom.

Among the 115 stocks traded so far today were 26 rises and 39 falls.

Shares in rural services firm Wrightson were unmoved at 153c after it said today it was in discussions to sell its forestry services business to PF Olsen and Company Ltd.

"They are trying to sell anything that's not part of their core business," Hamilton Hindin Greene broker Grant Williamson said.

He did not expect the possible forest business sale to affect Wrightson's share price much.

Both the Fisher & Paykel stocks were on the move, Appliances up 3c at 276 and Healthcare up 2c at 305.

"Both of them have their results coming up in the next few weeks," Mr Williamson said.

"Appliances has been bouncing off some low levels from about a week ago ... and the market will be looking to their result and forward comments after that surprise downgrade a number of months ago.

The market will want some confirmation from that result that they're still doing well, Mr Williamson said.

Shares in rural services firm Wrightson were unmoved at 153c after it today said it was in discussions to sell its forestry services business to PF Olsen and Company Ltd.

Carpet maker Feltex was unchanged at 73c while rival carpet firm Cavalier spurted 8c ahead to 380.

Among other movers, The Warehouse was down 3c at 365, while TrustPower was down 2c at 528 and NGC Holdings was up 4c at 335.

- NZPA