NZ stocks: Telecom drags market lower

12.25pm

The New Zealand sharemarket was dragged lower today by market heavyweight Telecom.

The benchmark NZSE-40 capital index was down 8.29 points to 1954,93 at 11.35am on light volume of $15.7 million.

The Reserve Bank decision to leave interest rates unchanged was as expected.

ABN Amro broker Nigel Scott said property sales data yesterday showing prices rising in virtually every region left the RB little option but to leave interest rates where they were.

Economists said the statement was more hawkish than anticipated and the kiwi dollar jumped over half a cent against the Australian dollar to a four year high of A89.08c.

Telecom continued its slide, falling 5c to 468, and was back to the low it hit after its profit warning earlier this month.

Dunedin biotech company Botry-zen made its debut on the market at 14c. It raised $5 million last year at 10c per share before stepping up to the main board today.

Tourism Holdings continued its partial recovery following bullish comments made at its annual meeting last week. It rose 5c to 108.

There was mild profit taking in Cavalier, down 10c to 755.

Auckland Airport was down 4c to 550. Spanish construction firm Ferrovial Aeropuertos has emerged as the front runner to buy the Auckland City Council's 25.7 per cent stake in Auckland International Airport, The Independent business weekly reported today.

Contact Energy was down 3c to 373 ahead of its result tomorrow.

Fletcher Building rose 2c to 327, returning close to its highs following a bout of profit taking.

Mainfreight rose 5c to 108 after more than doubling its half year profit.

Other stocks to move included Baycorp, up 3c to 221, Infratil, down 3c to 180, Hellaby, up 12c to 294,Ports of Auckland, down 3c to 632, Sky TV, down 6c to 343, Vertex, up 7c to 130, and Westpac NZ, down 10c to 1520.

There were 20 rises and 24 falls among the 110 stocks traded.

- NZPA