NZ stocks: Sharemarket slips lower

12.00pm

The New Zealand sharemarket slipped lower in quiet morning trade with two of its benchmark indices giving up ground.

At 11.30am, the benchmark NZSX-50 index was down 10.09 points at 2724.31. The NZSX-All capital index also slipped, down 2.22 points at 909.55.

Morning turnover was $18.1 million, which included 21 rises and 34 falls among the 116 stocks traded.

Shares in Telecom were down 1c at 561. Carter Holt Harvey was down 3c at 229 and Contact Energy was down 9c at 571.

ABN Amro Craigs broker Matt Willis said trade on NZX was quiet this morning with little corporate news to encourage investors.

Fast food operator Restaurant Brands today posted a 0.5 per cent slip in sales to $95.3m for the 16 weeks ended September 6.

Same store basis sales were down 1.4 per cent for the quarter, and 0.6 per cent down on the previous September year.

For the half year, sales totaled $167.8m, up 0.4 per cent on the same period in 2003.

A drop in KFC sales offset growth in the firm's other fast food operations in New Zealand and Australia.

Restaurant Brands shares were up 1c at 127.

"I think there's a perception out there that there's not a great deal of growth out there (in the fast food sector)," Mr Willis said.

"The industry is so very competitive and margins seem to be under continuing pressure and as a result what Restaurant Brands needs to show is reasonably resilient and cashflows," he told NZPA today.

"The way the share price is performing is obviously supported by the Restaurant Brands' result."

Trans Tasman Properties (TTP) today announced a conditional purchase of a development site in Hong Kong for $HK565.73m ($112.23m).

The development site is near the former Hong Kong International Airport and is zoned for residential and commercial development.

TTP shares last traded yesterday at 38c.

NZX placed Ebos shares on an immediate trading halt until tomorrow morning when they would resume trading.

One of its shareholders -- Romney (No. 30) Ltd, a unit of Rangatira Ltd -- intended to offer its 6.2 per cent for sale.

Ebos shares last traded at 410c yesterday.

There was little other corporate news about to drive the market.

Other shares on the move included: Auckland International Airport down 1c at 707, Fisher & Paykel Healthcare up 12c at 1377, F&P Appliances down 4c at 408, Michael Hill International down 9c at 700, NGC Holdings up 2c at 295, Sky TV up 4c at 539, and Fletcher Building down 8c at 557.

- NZPA