NZ stocks: Market loses way after early gains

The New Zealand sharemarket lost its way in trading this afternoon after gains earlier in the day inspired by positive news from overseas markets.

At the NZX's 5pm close the NZSX-50 gross index had fallen 14.21 points or 0.66 per cent to 2157.04, while the NZSX-40 was down 10.50 points or just under 0.5 per cent to 2097.07.

Turnover was $71.13 million on 30.8 million shares traded.

First NZ Capital director Philip Hunter told NZPA the market's focus today was on strong overseas markets.

The NZSX-50 made it as high as 2185 in early trade on news of a good days on Wall St and in London, but began to subside as the day wore on.

"There was a bit of weakness across the board really in our market," Mr Hunter said.

Market kingpin Telecom led the market down finishing 2c down at 510 after having gained 4c to 516 in early trade.

Mr Hunter said stocks that had done well recently such as Contact Energy had taken falls indicating "a bit of profit taking".

"You've got to remember our market has had a very, very strong run over the last few months, so I guess that's not surprising," he said.

Contact was down 15c to 475 today.

"I suspect there's a little bit of funds being moved out of our market back into other equity markets given the very strong gains that offshore investors have actually had, both through the markets and the currency.

"I'm sure that they're contributing to some of the profit taking as well on both those scores."

Mr Hunter said the New Zealand dollars recent ascent to the US60c mark may have been a trigger point for some overseas investors to exit the local market.

Elsewhere, yesterday's big noises on the market Tower Group and Tranz Rail were both up.

Tower Group rose 6c to 173. Guinness Peat Group, which is to underwrite a $210.8 million rights issue for the troubled insurer is butting heads with fellow shareholder Hanover Group over the underwrite.

Meanwhile Tranz Rail shares rose a cent to 94, still a cent short of the 95c a share offer Australia's Toll Holdings is to offer in a rejigged version of its takeover bid which now also works in the Government's plans to purchase, upgrade and maintain the track network.

Other stocks to rise included: Air NZ up a cent to 52, Fletcher Building up 3c to 368, Genesis down 5c to 114, Ports of Auckland up 4c to 770, Promina up 2c to 270, and Sky TV up 2c to 460 .

Stocks to fall included: AMP down 6c to 584, Auckland Airport down 6c to 584, BayCorp Advantage down 3c to 162, Briscoe down 2c to 196, Cavalier down 5c to 470, Dorchester Pacific Group down 8c to 155, Fisher & Paykel Healthcare down 25c to 1165, Mainfreight down 5c to 137, NZX down 15c to 455, Pacific Retail down 5c to 207, Restaurant Brands down 4c to 135, Sky City down 15c to 905, TelstraClear down 3c to 507, Trustpower down 6c to 481, and the Warehouse down 7c to 483.

There were 42 rises and 57 falls among 136 stocks traded.

- NZPA