NZ stocks: Telecom, airport jitters put shares under pressure

6.30pm

The sharemarket had a down day, led down by Telecom and Auckland Airport, to reach its lowest point in more than a year.

The NZSE-40 capital index was down 12.43 points, or 0.64 per cent, to 1940.03 on turnover worth $57.5 million.

Market leader Telecom was the main contributor to the fall, as the incumbent telecommunications company slipped 12 cents to $4.63 on $21.6 million turnover, a closing level not seen since mid-year.

Brokers were scratching their heads as to the cause, although they noted it was a volatile stock at present. Bad press about tougher upcoming regulations were a possible factor, as were comments from an Australian analyst about Telecom's preparedness for new technology and its Australian investment, ASB Securities broker Andrew Kelleher said.

"There doesn't seem to be any confidence in Telecom at the moment and any analyst that raises questions about AAPT does get the market worried about what Telecom is going to do," he said.

Another broker said Telecom had slipped through a key level of 465. "There's a lot of loose offshore stock," he added.

Auckland Airport also weighed on the market, sliding 12c to 510.

On Thursday Auckland City Council meets to consider how to sell its 25 per cent stake in the airport, but market speculation is that a trade buyer for the shares is looking unlikely and a bookbuild is on the cards.

Fletcher Forests fell 3c to 94, prompting comments that since its consolidation this week the stock had lost its attractiveness as a cheap index buy.

But fellow forestry stock Carter Holt Harvey continued its upturn, rising a cent to 176 after a 4c rise yesterday on world optimism and its future plans.

Last week the company announced it was working with the receiver of the Central North Island Forest to set up a management company that would sell and transport logs to export markets.

Others to rise included Port of Tauranga, up 9c to 440, and F&P Appliances up 20c to 1080, most likely on a positive news report, while its healthcare twin was flat at 1035.

On the downside, retailers Briscoe Group and the Warehouse both sagged by 6c to 259 and 8c to 712 respectively, while Fletcher Building was down 4c to 322, and Tranz Rail was square at 99.

There was solid trading off-market in Westpac NZ which rose 5c to 1460, a day after it shed its 40c dividend and fell an equivalent amount. There was over $3.5 million traded in the New Zealand share and over $5.8 million in the head share.

There were 36 rises and 41 falls among the 129 stocks traded.

On Wall St, United States stocks sagged after a report showed US manufacturing shrank for a third straight month, spurring investors to cash in after a recent rally.

The Dow Jones industrial average closed down 33.52 points, or 0.38 per cent, at 8862.57, according to the latest figures. The broader Standard & Poor's 500 Index fell 1.78 points, or 0.19 per cent, at 934.53. The Nasdaq Composite Index was up 6.02 points, or 0.41 per cent, at 1484.80.

- NZPA