NZ stocks: Sharemarket falls off record high

5.00pm

The benchmark sharemarket index fell off the record high set on Friday, as the local market followed Wall Street down in muted Monday trading.

The benchmark NZSX-50 gross index fell 1.80 points to 2927.68, while the NZSX-All capital index lost 0.67 to 970.31.

Despite the slip, Stephen Wright of ASB Securities said he thought the market had held up well in light of negative turns in offshore equities markets.

US stocks slid on Friday, spooked by remarks by US Federal Reserve chairman Alan Greenspan. Mr Greenspan said foreign appetite for US assets would likely decline and those who were unprepared for higher interest rates were bound to get burned and were "desirous of losing money".

The Dow Jones industrial average closed down 123.70 points, the Standard & Poor's 500 Index finished down 13.15 points and the Nasdaq Composite Index fell 31.23 points.

It was first significant pullback since stocks started rallying after the US presidential election on November 2.

Telecom helped keep the local market from slipping too much, ending the day up 2c at 606, on volume worth $49.4 million.

Total market turnover was worth $93.5 million, with 66 falls and 49 rises among the 165 stocks traded today.

Contact Energy was another big stock helping to underpin the market today, up 3c at 627 ahead of its annual result tomorrow.

Carter Holt Harvey slipped 2c to 215, after Friday's news it was to make an off-market takeover offer for Australian packaging firm Wadepack for A$85 million ($95 million).

Fisher & Paykel Healthcare fell 9c to 301, which Mr Wright said reflected the company's exposure to the US market and the effects of the strong New Zealand dollar.

Kiwi Income Property Trust was unchanged at 110 after it announced a first half net profit after tax of $25.2 million, up 5.1 per cent over the same period last year.

Fellow property stock Capital Properties rose 2c to 114.

Tower remained weak after last week's announcement of a $54.6 million net profit for the September year, losing 5c to 213.

Wood processor Tenon gained a cent to 222, after the company announced the Inland Revenue Department had ruled its planned $321 million capital return for shareholders would not be deemed a dividend for New Zealand tax purposes.

Other stocks on the move today included: Air New Zealand down 3c at 164, Steel & Tube Holdings up 11c at 463, Sky Network TV down 9c at 566 and Fletcher Building up 2c at 597.

- NZPA