<i>NZ stocks:</i> Market drifts lower as investors take profits

4 May, 2004 12:21 AM2 mins to read

The New Zealand sharemarket drifted lower this morning as investors took the opportunity to realise profits, a broker said.

At 11.30am, the benchmark NZSX-50 index was down 3.42 points at 2609.15, while the NZSX-All capital index was down 0.52 points at 885.48.

Top stock Telecom was down 1c at 559.

There was $12.8 million worth of Telecom shares traded, from the total market turnover of $29.4 million by 11.30am.

Among the 104 stocks traded were 24 rises and 28 falls.

ABN Amro Craigs broker Matt Willis said the market had got off to a quiet start today, thanks in part to last week's 25 basis point rise in the official cash rate to 5.50 per cent.

"That (the rate rise) obviously impacts on valuations and on investors mindset when looking at dividend yields in the equity markets," Mr Willis told NZPA today.

"The reaction of the market, if anything, has been to use it (the rate rise) as an excuse to take a bit of profit out of the market," he said.

"Today the market's drifting again, but I don't think its meaningful direction -- it's coming off on low volume and you can't read anything in to it in terms of it being a trend."

Meanwhile, Shotover Jet today said it was delisting at market's close on Friday after Ngai Tahu Holdings (NTH) had acquired 100 per cent of its shares.

Air NZ shares were unchanged at 42c after it and Qantas began their appeal to overturn the Australian Competition Tribunal's rejection of their planned tie-up.

There was little other corporate news about this morning.

Meanwhile, TrustPower shed 12c to 400 on moderate turnover, while Austral Pacific gained 20c to 315.

"That (Austral Pacific) listed at the start of the year at $2 (a share) so it's been a stellar performance," Mr Willis said.

Other stocks on the moved included: AMP down 4c to 658, Fisher & Paykel Appliances down 5c to 465, The Warehouse down 3c at 432, Fletcher Building up 2c at 452, Lyttelton Port Company up 2c at 163, Tower up 2c at 174, and Wrightson up 1c at 139.

- NZPA