NZ Stocks: Sharemarket tracks lower in quiet trade

1.30pm

The New Zealand sharemarket's leading indices tracked slightly below their opening levels in quiet trade this morning.

By midday, the benchmark NZSX-50 gross index was 3.89 points or 0.16 per cent lower at 2490.68, while the NZSX-40 capital index was 3.89 points or 0.17 per cent lower at 2276.83. There were 29 rises and 36 falls on the 107 stocks traded by 11.30am.

Turnover by 11.30am was worth $34.33 million with much of this made up of yesterday's international trades and crossings out of Australia, Amro Craigs Equities institutional adviser Cameron Stewart said.

Otherwise volumes remained light across the board and trade was "terribly quiet... nobody's really recovered from reporting season".

Market leader Telecom was unchanged at 573 after yesterday chalking up a 9c gain. Trade in Telecom made up $14.8 million of total trade, while Telstra, which was down 3c to 525, made up $6.7 million worth.

Mr Stewart said these volumes were indicative of investors switching out of Telstra in Australia into Telecom in New Zealand.

"Telstra made that acquisition of Trading Post which disappointed the market," he said.

"All the good news over the next six months seems to be coming from them (Telecom) -- dividend increases, and their capital management's been fantastic."

Fishing company Sanford Ltd was down a cent to 505.

This morning, the company said it was considering the possibility of merging with Sealord Group and Pacific Marine Farms Ltd.

Sanford and Maori-controlled Sealord are the two biggest New Zealand owned fishing companies.

Meanwhile, among the second tier stocks Carter Holt Harvey was down a cent to 203, Contact Energy was up 2c to 512, and Fletcher Building was down 2c to 417.

The Warehouse continued to emerge from its latest Aussie blues, rising 4c to 444.

"Most analysts have the New Zealand operations at a much higher level to where it's trading at the moment," Mr Stewart said.

Many investors were overestimating the negative effects of the company's problematic Australian operations.

"We still like the story," he said.

Fisher & Paykel Appliances was down 2c to 434 after shooting up 38c to an all time high of 438 yesterday on an improved profit forecast.

"Trading conditions remain good for them," Mr Stewart said, adding the company had further cemented its "exciting" alliance with United States dishwasher manufacturer Whirlpool.

Elsewhere the biggest moves among the top 50 stocks were Auckland International Airport which fell 8c to 645, Hallenstein Glasson down 5c to 275, Hellaby Holdings down 4c to 496, Nuplex up 10c to 470, Promina up 5c to 405, Sky City down 7c to 440, Sky TV down 4c to 520, TelstraClear down 3c to 525, TrustPower up 4c to 690 and Waste Management NZ up 3c to 430.

Market operator NZX's shares appeared unaffected by fallout from yesterday's technical glitch rising 10c to 800 this morning.

- NZPA