NZ stocks: Market edges lower during quiet morning trade

12.00pm

The New Zealand sharemarket got off to a slow start this morning after the Labour weekend holiday, two of its key indices edging lower.

The benchmark NZSX-50 gross index was down 1.47 points at 2788.36.

The NZSX-All capital index was down 2.95 points at 926.71.

Among the climbers were Lion Nathan, up 13c to 818, Michael Hill International, up 5c to 755, Fisher and Paykel Appliances, 2c to 398, and F&P Healthcare, up 1c to 281.

Market heavyweight Telecom eased 4c to 580 on turnover of $17.4 million.

ABN Amro Craigs broker Matt Willis said the dip in Telecom could be a bit of profit taking, thanks to the high New Zealand dollar, which this morning was just above the US70c mark.

Market turnover was $39.5 million with 37 rises and 45 falls numbering among the 123 stocks traded.

"There's just not much going on today," Mr Willis told NZPA today.

Fletcher Building dropped 13c to 548 after going ex-dividend 14c per share.

"So that's really unchanged," Mr Willis said.

"It's really an interesting time for the market.

The US markets are in a bit of a downtrend, but you've got a slightly different scenario in New Zealand," he said.

"You've still got good earnings growth, you've got an economy that needs to slow down and as a result you've got inflationary pressures and that's putting an upward bias on interest rates.

"The focus is at a macro level," Mr Willis said, noting the market was factoring in a 25 basis point rise in the official cash rate later this week, taking it to 6.25 per cent.

Today, Australian firm Origin Energy's $5.75 a share takeover bid for Contact Energy closes.

Contact shares were unchanged at 595c.

Companies holding their annual meetings today include Allied Farmers and Port of Tauranga.

Stocks which lost ground this morning included: Auckland International Airport down 3c at 710, Pyne Gould Corporation down 5c at 315, Sky City Entertainment down 2c at 439, and TrustPower down 5c at 475.

- NZPA