NZ stocks: Market closes down for sixth day

6.30pm

The New Zealand sharemarket closed lower for the sixth consecutive session today, due in part to profit taking in Telecom shares, a broker said.

At 5pm, the benchmark NZSX-50 index was down 16.19 points at 2432.56, while the NZSX-40 capital index was down 16.17 points at 2249.94.

The indices last closed on a positive note last Tuesday.

There was $137.4 million shares traded on volume of 47.9 million on New Zealand Exchange today.

Among the 148 stocks traded were 28 rises and 74 falls.

Shares in market heavyweight Telecom were down 6c at 553 ahead of the company posting its December half result tomorrow.

ABN Amro Craigs broker Matt Willis said Telecom shares had been driven lower today as offshore investors indulged in profit taking.

Telecom is expected to post strong first half earnings of about $365 million, and possibly give some indication on its dividend policy.

"I think everyone is reasonably confident with what sort of numbers will come in from earnings and net profit after tax (npat) points of view," Mr Willis said.

"Telecom's dividend policy will be the key for the short-term direction of that stock," he said.

The telco currently pays out 50 per cent of its npat, and Mr Willis said ABN Amro was looking for that ratio to be lifted to 75 per cent, perhaps later in the year.

"What we're looking for is some firm direction," he said, noting a rise in Telecom shares after the announcement could break the market's six day down trend.

In other market news, retailer Briscoe Group shares were down 8c at 156 after it said same store sales were down 3 per cent for the three months to January 31 over the same period last year.

Total sales at the retailer's Briscoes Homeware outlets of $74.5 million were 2.9 per cent up on the previous corresponding period, while sales of $31.7 million at its Rebel Sport stores were up 3.36 per cent, the company told NZX in a statement.

Mr Willis said the Briscoe result helped drag other retail stocks down.

Michael Hill International was down 3c at 502, Hallenstein Glasson was down 2c at 286, and The Warehouse was down 2c at 512.

Meanwhile, Tower rose 1c to 133 after it was revealed GPG yesterday topped up its holding to 19.39 per cent.

There was $9.4 million worth of Carter Holt Harvey shares traded. They finished the day unchanged at 189.

Vending Technologies was down 10c to 125 after it announced a six month net profit of $1.88 million.

Other stocks on the move today included: Auckland International Airport down 4c at 657, AMP down 6c at 488, Cavalier down 22c at 505, Fisher & Paykel Healthcare down 10c at 1225, Ports of Auckland down 10c at 775, Fletcher Building up 4c at 394, Steel & Tube up 3c at 407, Hellaby up 5c at 510, and Promina up 10c at 360.

There was $14,826 worth of shares traded on the New Zealand Alternative Exchange today.

Overseas, the Standard & Poor's 500 Index rose 0.77 to 1136.03. The Dow Jones Industrial Average gained 6 to 10,505.18 and the Nasdaq Composite Index increased 3.06 to 2066.21.

- NZPA