NZ stocks: Market has muted reaction to rate hike

12.00 pm

The New Zealand sharemarket lost a bit of steam this morning after the Reserve Bank raised rates yesterday.

By mid-morning the top-40 index was down 8.53 points, or 0.41 per cent, at 2066.49, while the top-10 was down 7.00 points at 919.56.

Turnover was light with 10.18 million stocks valued at $35.61 million, topped by Telecom's 1.56 million stocks worth $7.56 million.

ABN Amro retail equities adviser Nigel Scott said the market had been muted all week, with many market players on analyst trips across the Tasman.

"There's not a lot of action.

"I think most people will be starting to focus on the currency at US44c, that's obviously the rally up here, people looking at what impacts that will have if it continues, where stocks have hedging," Mr Scott said.

"Clearly importers people are going to be looking at here -- retailers, Briscoes, The Warehouse, Nuplex, Hellaby's."

Briscoe Group was up 4c at 176 after announcing a rise in annual net profit of 40 per cent to $17.51 million, higher than the forecast of about $15.5 million. The company declared a dividend of 3.25 cents per share.

The result was the first since Briscoe listed late last year at 100.

Takeover target Bendon Group was steady at 186 after suitor Pacific Retail Group announced it had raised its stake to 31 per cent of the lingerie maker. PRG issued another shareholder notice this morning that it currently held 32.07 per cent.

PRG shares fell 5c to 205.

Telecom was down 9c at 480, Telstra lost 1c to 655, BIL International lost 1c to 53, Carter Holt Harvey shed 2c to 198, Fisher & Paykel Healthcare was down 5c at 1024 and F&P Appliances shed 8c to 930.

On the upside, Fletcher Building gained 4c to 296, Otter was up 2c at 31, Restaurant Brands rose 4c to 205 after announcing it was buying 51 Pizza Hut outlets in the Australian state of Victoria, Tranz Rail gained 1c to 421, and Tourism Holdings rose 1c to 103.

There were 39 falls and 26 rises on the 121 stocks traded.

On Wall Street the blue chip Dow Jones industrial average fell 133.68 points, or 1.26 per cent, to 10,501.57; the broader Standard & Poor's 500 Index dropped 18.44 points, or 1.58 per cent, to 1151.85; and the tech-laced Nasdaq Composite Index was down 47.93 points, or 2.55 per cent, at 1832.94.

- NZPA