NZ stocks: Telecom, Fletcher Building lead market down

Profit taking in leading stock Telecom and a 4 per cent slump in Fletcher Building led the sharemarket lower today.

The first down day this year, and the first in six days, took the benchmark NZSX-50 index down 18.21 points to 2456.99 and the NZSX-40 capital index down 15.69 points to 2287.84.

UBS Warburg broker Campbell Stuart advised that not too much should be read into today's fall.

"I just think this was the tail end of what has already been a quiet week and participation in the market has been light.

"The markets overseas were off overnight but it's really just come down to a couple of flows."

Trading was worth only $52 million from the 17 million stocks that changed hands.

Shares in Fletcher Building slumped 19c from a two-month high to 414, possibly due to a fall in Australian building approvals, a broker said today. Volume was reasonable, with 1.3 million shares traded worth $5.5 million.

Greenslades broker Paul Valk said while there had been no news issued by the company, it was possible investors had taken their cue to sell from the Australian property market.

Australian building approvals fell 6.7 per cent in November.

"It's not a huge drop but it's certainly significant," Mr Valk said.

Telecom shed 7c from yesterday's two-year high to close on its low at 538 as investors took profits. US investors have had double-whammy gains from the share price and sharp currency gains.

Its fall was in contrast to Telstra's 5c gain to 565.

Others to succumb to profit taking after strong runs included Contact Energy, down 8c to 540, Auckland Airport, down 6c to 690, Freightways, down 6c to 226, and Lion Nathan, down 17c from yesterday's record high to 688.

DB Breweries, which has lagged Lion's rise, gained 10c to 815 today.

However, others continued their good form. NGC Holdings rose another 2c to 232 and it was onwards and upwards for TrustPower, which gained 10c to a new high of 700.

Tiny Mooring Systems rose another 15c to 245. It has risen 32 in the four trading days so far this year.

Australian banks listed here went in opposite directions, with Westpac NZ gaining 40c to 1785 and ANZ shedding 20c to 2030.

There were mixed fortunes in the hot retail sector. Hallenstein Glasson put on another 6c to 285, Pacific Retail gained 4c to 240, while The Warehouse dropped 1c to 533, Michael Hill International dropped 3c to 497, and Briscoe 2c to 173.

Stocks exposed to the New Zealand dollar generally eased. Sanford fell 3c to 522, Fisher & Paykel Appliances fell 2c to 378, Fisher & Paykel Healthcare fell 5c to 1260, and Cavalier fell 5c to 555.

Sky TV continued its poor run so far this year, falling another 10c to 540 and its two thirds owner, Independent Newspapers, fell 4c to 506. Sky ended last year on 560.

Insuraners AMP and AXA both fell, AMP dropping 5c to 570 and AXA 9c to 313. Tower held steady on 131.

Among the 137 stocks traded, 53 fell and 47 rose.

- NZPA