NZ stocks: Prices soften as yesterday gains slip away

The sharemarket softened today as many shares gave up some of yesterday's gains.

Market leader Telecom fell back 6c to 503 after gaining 9c yesterday. Telcos had a rough ride overnight in world markets despite the Dow ending in positive territory. The Nasdaq in contrast fell 1.7 per cent.

By mid-morning the NZSE-40 capital index was down 13.22 points to 2087.89, on light volume of 12.68 million stocks valued at $22.84 million. Topping turnover was Telecom's $4.95 million, followed by Carter Holt Harvey with $2.32 million.

BIL International fell back 3c to 53c after announcing yesterday its 46 per cent owned British hotel group Thistle had sold 37 hotels for around book value at $NZ2 billion.

Forsyth Barr Frater Williams executive director Don Turkington said the selling was because at this stage it seemed the cash would remain in Thistle.

BIL's shares surged 20 per cent on Monday ahead of the announcement and BIL told the market it did not know why even though the deal was about to be announced.

Carter Holt Harvey, which yesterday hit a 23 month high of 204, fell back another 2c from its 201 close to 199.

Fisher & Paykel Healthcare fell 25c to a new low of 945 as investors continue to punish it for its disappointing half year profit.

It was in danger of being surpassed by its "ugly sister", F&P Appliances, which was down 10c to 930.

The Warehouse, which surged 30c yesterday after its positively received result on Monday, was down 5c at 691.

Ports of Auckland stretched to a new record high of 620, up another 5c.

Baycorp Advantage rose 10c to 670, Contact Energy lost 2c to 392, Fletcher Building was down 1c at 301, and Telstra lost 9c to 676.

There were 40 falls and 26 rises on the 117 stocks traded.

- NZPA