NZ stocks: Shares fall in gloomy session

The sharemarket lost ground today as uncertainty hung over leading stocks and the market possibly stumbled as a result of yesterday's shortened session.

The NZSX-50 gross index fell 18.57 points or 0.85 per cent to 2178.09, while the NZSX-40 capital index was down 18.7 points or 0.88 per cent to 2102.34. Turnover was $108 million.

"Not a good day," said JB Were senior investment advisor Peter Stokes.

"The negative tone hit right across the board," he said.

Although the US market closed lower yesterday, that didn't provide a definitive direction to local shares, Mr Stokes said.

Given Wall Street's good recent gains,"it will not have come as a surprise to our market that it's had a bit of a breather."

Mr Stokes said it was possible yesterday's closure of the market for five hours due to a software glitch had resulted in a backlog of orders that "squeezed the market out today".

Elsewhere there was "some indigestion still with the Fletcher Building placement and that seemed to be reasonably wide reaching amongst the leaders".

Fletcher Building yesterday announced a placement of 25 million shares at $4.10 to help pay for the purchase of Australia's Tasman Building Products.

Mr Stokes said there appeared to be a bit of selling to raise the required funds for the placement.

Today Fletcher Building shares finished 2c lower at 411.

The gloom extended to market leader Telecom which Mr Stokes said was "under a cloud at the moment with respect to what that company's 3G roll out plans may be".

Telecom may be forced to bring forward its plans for a third generation (3G) mobile phone and data network after competitor Vodafone announced last week it would build its own such system here within 18 months.

Mr Stokes said if Telecom does bring forward its 3G plans "perhaps the dividend may be a little bit less" as the company invests in the new techology.

Telecom finished today's session 4c lower at 500.

Meanwhile Sky TV was down another 12c today to 450.

At the beginning of the week a report leaked to the Sunday Star Times suggested it was overvalued.

" That's consistent with our view," Mr Stokes said, adding that the stock " probably needed a little bit of cooling".

Embattled insurance giant AMP lost another 31c today, finishing at 510 after yesterday announcing a record $2.45 billion half year loss.

"The market is still trying to get to grips with the recent result and how that stacks up with expectations that have come from the capital raising a couple of weeks ago."

Elsewhere, Agricultural equipment maker Skellmax Industries today posted a better than expected net profit after tax (npat) of $12.59 million for the June year, slightly up on the forecast $12.44 million.

The company's shares finished the session a cent lower at 117.

Among the few stocks to rise today were: Briscoe Group up 4c to 179, Hellaby Holdings up 5c to 460, Infratil up 2c to 231, Promina up 4c to 284, Restaurant Brands up 2c to 131, and Wrightsons up 3c to 135.

Stocks to fall included: Auckland International Airport down 7c to 625, Baycorp Advantage down 7c to 191, Fisher & Paykel Appliances down 8c to 1447, Fisher & Paykel Healthcare down 3c to 1205, Independent Newspapers Ltd down 10c to 420, Michael Hill down 20c to 405, Sanford down 3c to 485, Sky City down 7c to 905, TrustPower down 10c to 480, Telstra down 5c to 525, Tower Group down 6c to 110, Tranz Rail down a cent to 100 and the Warehouse down 15c to 495.

There were 37 rises and 58 falls on 147 stocks traded.

- NZPA