NZ stocks: Market slips on sell down of big names

The sharemarket slipped today losing just over one per cent on both its key indices in a broad sell off of the major stocks.

The NZSX-50 gross index dropped 1.17 per cent or 25.23 points to 2131.8 while the NZSX-40 capital index was down 1.11 per cent or 23.32 points to 2073.75.

Turnover was $66.78 million on 23.01 million shares traded.

JB Were institutional adviser Joe Gallagher said the market had seen a steady decline all day in " a continuation of some defensive selling in all the big names"

"Telecom, Contact, Sky City and even Carter Holt Harvey came in with a bit of selling," Mr Gallagher said.

Telecom fell 5c to 505, Contact 11c to 464, Sky City 30c to 875 and Carter Holt Harvey down 2c to 174.

Mr Gallagher said a global asset allocation shift" was the likely driver of today's losses.

He said the New Zealand market which gained 15 per cent in the last quarter had outperformed many other markets, but as cyclical trends continued the New Zealand market would ease.

"I think you're starting to see some of that rotation out in the last couple of days. You've seen it in the Australian banks, and you're seeing it in the Telecoms, Contacts and Sky Cities.

"Generally when these global asset allocation shifts happen they tend to happen for a number of weeks.

"People are betting the world is going to be a friendlier place following the Northern Hemisphere summer ," Mr Gallagher said.

Otherwise, Mr Gallagher said volumes traded today "weren't particularly high" and there was little news to influence the market.

E lsewhere, Tranz Rail currently the subject of a takeover bid from Australia's Toll Holdings was one of the few top 50 stocks to rise, gaining a cent to 95, which Mr Gallagher said was interesting.

"If the market believes that Toll's bid was going to be successful, then it would probably be trading at discount to 95 cents."

Restaurant Brands also finished up a cent at 136. Yesterday the company's Australian chief executive Jim Collier quit to take up another position in Australia.

Among the few other stocks to rise today were Briscoe up 3c to 199, and Mainfreight up a cent to 138.

Among stocks to fall were: AMP down 14c to 570, ANZ down 53c to 1997, Cavalier down 5c to 465, Fisher & Paykel Appliances down 25c to 1270, Fisher & Paykel Healthcare down 15c to 1150, Hellaby Holdings down 4c to 441, NZX down 5c to 450, Ports of Auckland down 20c to 750, Promina down 5c to 265, Sky TV down 5c to 455, TelstraClear down 6c to 501, and the Warehouse down 3c to 480.

There were 34 rises and 67 falls on 141 stocks traded.

- NZPA