NZ stocks: Telecom leads market lower

Heavyweight stock Telecom pulled the sharemarket down today in a market thinned by the Wellington Anniversary Day holiday.

ABN Amro Craigs Equities broker Nigel Scott said it appeared Telecom and its Australian equivalent Telstra had succumbed to profit takers from overseas who were banking big gains resulting from the surging New Zealand dollar.

Telecom closed 10 cents off at 451 and dominated volume, making up $12.3 million of the $32.8 million total. Telstra lost 9c to 496 here.

There was still high interest in Tranz Rail, which shot 11 per cent ahead on Friday after Transport Minister Paul Swain gave a broad hint the Government would pay a "reasonable" price for the railroad company's tracks, if re-nationalised.

"That has certainly excited a few people to get on board," Mr Scott said.

Tranz Rail closed 2c ahead at 123. If the Government pays close to the book value of the tracks it will equate to around $1.50/share.

The NZSE-40 capital index closed 14.51 down at 1994.71, the top 10 index fell 9.50 to 897.12 and the small stocks index lose 21.70 at 5743.98.

Meat company Richmond eased another 5c to 270 as bearish sentiment lingered about the likelihood of PPCS' takeover bid being successful.

Sky TV, which has had a good run this year because of the rise of the New Zealand dollar, which makes its overseas programmes cheaper to buy, fell 9c to 360 in the morning but recovered to 366 by the close.

There was good interest in Baycorp Advantage which closed up 4c at 234.

Losing stocks included: Auckland Airport, 6c to 534, AMP, 15c to 1210, Carter Holt Harvey fell 2c to 185, The Warehouse fell 5c to 735, Wrightson 3c to 117 and Port of Tauranga 15c to 450.

Against the trend, Lion Nathan rose 7c to 610 and Westpac NZ rose 7c to 1437.

There were 21 rises and 56 falls on 119 stocks traded.

- NZPA