NZ stocks: Market edges lower as Telecom retreat continues

12:00 pm

The sharemarket edged lower this morning as Telecom continued to retreat from its powerful start to the year.

The NZSE-40 capital index was down 11.01 points to 2080.28 at 11.30 am on turnover of just 6.5 million shares worth $15.8 million.

Telecom dropped 8c to 523 to add to yesterday's 14c loss, but it was still 26c ahead for the year. Turnover in Telecom was worth just $3.3 million.

The local market took its negative tone from Wall Street where US stocks were down in late trading as investors worried that its rally in recent months was too much, too soon, especially considering lingering uncertainty about corporate profits.

US investors are bracing for bad news as the reporting season heats up, with profits overall for the quarter expected to be the worst in a decade.

The Dow fell 1 per cent and the Nasdaq dropped 1.6 per cent.

Here, Fletcher Building, another good performer this year, eased back 1c to 293.

There was interest in GPG with two million shares traded worth $1.2 million. It was up 2c at 170.

Bendon, the bra maker, lifted 7c to 185 after media speculation that a new unidentified suitor was pursuing it.

Shareholders had been due to vote next month on a $38.5 million bid by a consortium headed by managing director Hugo Venter in conjunction with 26 per cent owner AMP Henderson.

Fisher and Paykel Appliances fell 15c to 1075 and the F&P Healthcare was down 5c at 1630.

Sky City was down 7c to 610, while Nuplex fell 6c to 319, Richmond fell 5c to 240 and Contact Energy fell 1c to 389.

Westpac NZ continued its strong performance, rising 19c to 1750.

Steel and Tube, up 6c to 260 and Sky TV, up 3c to 405 were among the minority of stocks to rise.

In all there were 27 rises and 37 falls among the 136 stocks traded.

- NZPA