NZ stocks: Listless market weakens in morning

12.00 pm

A listless sharemarket edged lower today as profit-taking in Telecom continued.

The market leader, after an initial rise of 2c went into reverse, and by 11am was 6c down on yesterday's close at 522. Volume in Telecom was steady at 2.8 million shares worth $15.11 million.

Number 2 stock Carter Holt Harvey was also down 4c to 176.

Those movements saw the NZSE-40 capital index fall 10.03 points to 2085.24 on total market volume of 15 million shares worth $42 million, heavier than most days so far this year.

Macquarie Equities broker David Cleal said there were very few features on the market. Auckland Airport had been well sought and was up 3c at 378.

Restaurant Brands rose 8c to 196 after it reported a net profit of $12.2 million for the year to November 30, up 24.4 per cent on the previous year.

The company announced a fully imputed final dividend of 8.0cps giving a full year dividend of 12.5cps which was up 2.5c to account for a change in is balance date to February 28.

Bendon Group was steady on 185 after a sale at $2.00/share of 4.8 million Bendon shares, 15.6 per cent of the company, worth $9.7 million was conducted on the sharemarket this morning.

A spokesman for the lingerie manufacturer said he understood the seller was Tower but he did not know who the buyer was.

Tower confirmed the sale and said the broker was JP Morgan but also would not reveal the buyer.

Bendon yesterday rose seven cents to a seven-week high after the company said a rival bid may emerge to challenge a group headed by director Hugo Venter for control of the company.

Mr Venter and AMP Henderson Global Investors are offering $38.5 million for unit Bendon Ltd, excluding cash held by the parent company.

In other movements, Contact Energy was down 1c at 389 and fellow takeover target Frucor was also down 1c at 230.

Sky TV continued its good recent run, rising 5c to 410.

In all, there were 21 rising stocks and 32 falling among the 99 stocks traded to date.

- NZPA