NZ stocks: New NZ benchmark index turns negative

12.00pm

The New Zealand sharemarket's new benchmark index, the NZ50 gross, started in the positive today but by 11.35am had turned negative.

While the old NZ40 capital index was down 8.37 points to 1872.50, the new top 50 gross index, which unlike the old top 40 capital index includes dividends, was down 0.40 points to 1880.45.

Brokers said there was virtually no activity related to the new index as most funds are based on the old index or other indices.

Although the market turnover of $57 million was high for a Monday morning, brokers said most of that related to a portfolio sale from late last week which had been re-reported again today.

On-market volume was extremely light and typical of a Monday morning.

The market got little lead from Wall Street on Friday where the Dow Jones Industrial Average rose just 6.09 points to 7,891.

First NZ Capital broker James Snell said he doubted the market would take much direction from the Reserve Bank's quarterly monetary statement due on Thursday. Economists expect the bank to keep rates steady by possibly to signal an easing bias.

"People are looking for a theme developing rather than expecting any cuts," he said.

Market leader Telecom fell 4c to 417 -- its lowest level in just under 10 years. The company is suffering along with most other telecos around the world. Australia's Telstra is also suffering and was down another 2c to 434 -- a six year low.

AMP continued its journey south, losing another 2c to a new record low of 773. Fellow fund manager Axa fell 8c to 230.

Baycorp Advantage, which lost a third of its value last week on its poor received result, rose 2c to 109 on heavy volume of 4.7 million.

The Warehouse gained 9c to 565, DB Group was down 13c to 587 and Sanford fell 9c to 501.

NZ Refining, which on Thursday reported a $35.5 million year profit, was down 15c to 1665.

There were 17 rises and 38 falls among the 103 stocks traded.

- NZPA