NZ stocks: Rising currency, interest rates drag NZ shares lower

6.07pm

Nervousness over the rising New Zealand dollar, higher interest rates and negative offshore sentiment weighed on the sharemarket today, dragging it to its lowest close in over a month.

The benchmark NZSX-50 gross index closed 18.28 points lower at 2771.55, its lowest close since September 17, while the NZSX all capital index finished 9.59 points lower at 920.07.

Overall turnover was worth $114.93 million, with stocks rising outnumbered by those falling 28 to 84 on 156 traded.

Forsyth Barr dealer Suzanne Kinnaird said today's negative session was "possibly a bit of nervousness coming off offshore markets looking a little bit weaker".

"I think also our currency being so strong might be starting to affect people, getting them a little bit nervous and jittery".

The market's number one stock, Telecom, fell 10c to 574.

"If you're seeing people being cautious about the currency being stronger and interest rates rising... Telecom is the bellwether stock in that regard."

Elsewhere among the blue chips, Fletcher Building ended 19c lower at 542 after going ex-dividend 14c per share.

Ms Kinnaird said the move may have been a down to interest rate concerns and investors selling it down having taken the dividend.

Waste Management was down 14c to 524, albeit on low volume.

"There's a lot of sellers around so it will take a bit to bounce back up again," Ms Kinnaird said.

Meanwhile, dual-listed stocks which enjoyed gains yesterday on the Australian market played catch-up today in New Zealand.

BayCorp Advantage rose 15c to 358, while Lion Nathan was up 17c to 822.

ANZ Banking rose 15c to 2095 after reporting a net profit of A$2.815 billion ($3.03 billion) for the September year, up 20 per cent from the same period a year earlier.

Contact Energy ended the day 3c lower at 592. Australian firm Origin Energy's $5.75 a share takeover bid for Contact closed today.

Other stocks on the move today included: Auckland International Airport down 3c to 710, Freightways down 8c to 240, CanWest MediaWorks down 6c to 167, Nuplex down 10c to 510, NZ Refining Co down 50c to 2650, NZX up 10c to 730, Sky TV up 4c to 550, Steel & Tube down 9c to 455, TeamTalk down 20c to 255, Toll NZ down 5c to 265 and Tower down 4c to 223.

- NZPA