NZ stocks: Market sinks after a dose of negative sentiment

The New Zealand sharemarket finished down today as three of its leading stocks recorded share price dips, a broker said.

At 5pm, the benchmark NZSX-50 was down 18.67 points at 2439.05, while the NZSX-40 capital index was down 18.93 points at 2251.17.

Market heavyweight Telecom closed down 6c at 557, having accounted for 48.5 per cent of the $99.9 million worth of shares traded on the New Zealand Exchange.

There were 143 stocks traded on NZX today, including 32 rises and 58 falls.

ASB Securities broker Andrew Kelleher said there was a hint of negative sentiment in the market today and the dip in Telecom was probably consolidation after its recent gains.

Contact Energy shares shed 12c to 510 as the market rumour mill works overtime on what its majority shareholder, American company Edison Mission, plans to do with its stake.

The latest rumour is that Edison will sell its 51 per cent stake in the market's number two stock at a large discount.

"We will need to get some facts on what Edison intends to do with its stake before we make any assumptions," Mr Kelleher said.

Contact shares had performed well in 2003 and it was possible some investors were indulging in profit taking, he said.

Carter Holt Harvey -- NZX's number three stock -- finished down 1c at 193. There is speculation it is struggling to sell its tissue division and it may float it off as a separate company.

Sky City Entertainment closed unchanged at 460 after it confirmed it would buy the Darwin Casino from MGM Mirage Inc for A$195 million ($220 million).

"Investors seem to have absorbed that deal quite well," Mr Kelleher said, noting that there was just 239,628 Sky City shares traded today.

Fletcher Building shares were down 4c at 404 after it today posted a construction boom assisted net profit of $111 million for the December half.

Shares in insurer Tower were up 2c at 137 ahead of its annual meeting in Wellington tomorrow.

Retailer The Warehouse fell 17c yesterday and was down another 13c to 480 today after it said yesterday it was being squeezed on margins and still experiencing problems in Australia.

The company said sales in the second quarter at its New Zealand red sheds over the vital Christmas period rose 6.9 per cent on a like-for-like basis.

Other stocks on the move today included: Auckland International Airport down 5c at 665, Powerco down 5c at 196, Fisher & Paykel Appliances down 7c at 370, Hellaby down 6c at 499, AMP up 1c at 486, Steel & Tube up 4c at 400, Baycorp up 1c at 303, and Michael Hill International down 6c at 542.

There was $83,015 worth of shares traded on the New Zealand Alternative Exchange today.

Overseas, the Standard & Poor's 500 Index rose 5.73 to 1145.54. The Nasdaq Composite Index added 14.76 to 2075.33 and the Dow Jones Industrial Average increased 34.82 to 10,613.85.

- NZPA