NZ stocks: Market indices down on yesterday's trading

12.00pm

Trading on the New Zealand stock exchange got off to a lacklustre start with both benchmark indices again giving up ground on the previous day's trading.

At 11.30am the NZSE50 gross index was down 17.26 points, or 0.78 per cent, at 2195.26, while the NZSE40 capital index slipped 15.26 points, or 0.71 per cent, to 2127.87.

Today is the second day of the stock market's new trading hours, 10am until 5pm.

ABN AMRO Craigs broker Matt Willis expected the market was drifting a bit after yesterday's high-volume turnover.

"A lot of demand would have been soaked up yesterday and perhaps we're in for a slightly quieter day," he said.

Shortly after 11.30am, $83.1 million worth of shares had been traded on volume of 24.4 million. Among the 102 stocks traded were 24 rises and 48 falls.

Market leader Telecom was down 1c at 520 with $26.7 million of its shares traded on turnover of 5.1 million.

Mr Willis said all eyes would be on troubled insurer Tower's announcement on its capital raising plan later today.

Yesterday, trading of Tower shares was suspended when the company told NZX it had been offered an alternative proposal to the $200 million one put forward by Guinness Peat Group.

"If the market gets clarification of Tower raising the $200 million they need to shore up the balance sheet...I'm sure the share price will react favourably," Mr Willis said.

Tower shares were trading at $1.48 on Friday last week.

Shares on the rise today included Lion Nathan up 2c to 615, Michael Hill up 10c to 470, Sanford up 5c to 515, NGC Holdings up 2c to 159, Restaurant Brands up 1c to 139, Sky TV up 7c to 442, Steel & Tube up 5c to 365, and TrustPower up 4c to 490.

On the down side AMP fell 8c to 572, Auckland International Airport slipped 8c to 605, Contact Energy dipped 10c to 495, Fisher & Paykel Appliances slipped 5c to 1360, F&P Healthcare dropped 6c to 1229, Guinness Peat Group slid 4c to 158, Pacific Retail down 5c to 215, The Warehouse down 7c to 511, Westpac down 26 to 1774, and Sky City down 3c to 940.

- NZPA