NZ stocks: Market closes down for seventh day despite Telecom

6.40pm

The New Zealand sharemarket finished down for the seventh consecutive day after a positive result for Telecom failed to rally trading.

At 5pm, the benchmark NZSX-50 was down 1.18 points at 2431.38, while the NZSX-40 capital index was down 2.05 points at 2247.89.

The indices last closed on a positive note last Tuesday.

Market heavyweight Telecom today reported a $365 million net profit for the December half, which was mostly in line with market expectations.

It also said it would increase its quarterly dividend payout from 5.0 cents to 7.5 cents from the third quarter.

The telco's shares reacted to the result by stepping up 4c to 560, but inched back to close 2c up at 555.

ABN Amro Craigs broker Matt Willis said the Telecom profit had been well received by investors.

"The extent of the dividend increase and perhaps the timing is slightly less than what some people were expecting," he told NZPA today.

"What this does is confirm Telecom as a dividend play going forward, which it hasn't been in the past," he said, noting the market had been soft this week.

"If anything there's been a cautious tone to the buying (on New Zealand Exchange) and, as well, there's a slightly greater weight in selling with the currency having pushed a bit higher."

In other market news, upmarket Wellington retailer Kircaldie & Stains said its sales to the end of January were down 3.7 per cent on the same period last year.

Its shares closed down 7c at 318.

Kircaldie is the second retailer in as many days to report difficult trading over the traditionally lucrative Christmas period.

Yesterday, Briscoe Group reported a same-store sales slump over the holiday period. Today, its shares closed up 2c at 158.

Michael Hill International closed up 1c at 503, two cents off a 12 month high, while The Warehouse was down 4c at 508.

Elsewhere on the market the dull mood persisted.

The market's number two and three stocks, respectively, Contact Energy and Carter Holt Harvey had contrasting fortunes.

CHH was unchanged at 189, while Contact slipped 10c to 523.

Other shares on the move included: Auckland International Airport up 4c at 661, Cavalier up 10c at 515, Lion Nathan up 4c at 675, Promina up 8c at 368, AMP down 6c at 482, Independent Newspaper down 5c at 475, Ports of Auckland down 5c at 770, Steel & Tube down 7c at 400, Baycorp down 8c at 300, and Wrightson down 8c at 142.

- NZPA