NZ stocks: Shares start weaker again

Trading on the sharemarket started weakly again today, with bellwether stock Telecom setting a soft tone.

At 11.35am today the benchmark NZSX-50 gross index had slipped 7.52 points to 3083.70 and the NZSX-All capital index was down 3.18 points at 972.50.

Top stock Telecom lost 7c to 598.

Yesterday, the Commerce Commission recommended regulating mobile termination rates (MTRs), which are the fees that fixed line telecom operators pay mobile phone companies to terminate their calls.

While the commission's recommendation excluded voice calls using third generation (3G) technology, it ruled that Telecom's 027 network did not use 3G technology and would be subject to regulation.

A Telecom spokesman said yesterday it was unclear what the revenue impact of the proposed regulation would be.

Of the 105 stocks traded by 11.35am there were 38 rises and 28 falls.

Total market turnover in the time was worth a healthy $49.5 million, of which Telecom turnover accounted for $34.2 million.

Stock exchange operator NZX lost 70c to 760, after it yesterday forecast a 24 per cent drop in second quarter earnings. The company cited a number of factors in the expected downturn, including higher a slowdown in trading volumes and the fact there have been no new floats so far this year.

Tenon, which yesterday said it had deregistered from the United States Securities Exchange Commission (SEC), rose 7c to 367.

Last year the company cancelled its American Depositary Receipt (ADR) programme and delisted its shares from the New York Stock Exchange.

Provenco rose another 1c to 83c, on top of a 3c rise yesterday after it announced it had bought the customer base of eftpos dealer Eftco.

- NZPA