NZ stocks: Telecom's fall fails to hamper new index debut

It was a low-key start for the New Zealand sharemarket's new benchmark index, the NZ50 gross, although it started life in forward gear.

The new top 50 was up 5.27 points or 0.28 per cent at 1886.12 on fairly solid turnover of $92.1 mill ion.]

In contrast, the old NZSE-40 capital index fell 1.65 points to1879.20, largely because of Telecom, the index's weightiest stock, fell 8c to 413 on a heavy $37.5 million turnover.

Telecom dipped at one stage to 411, its lowest price in just under 10 years as telecommunciation companies slip out of favour again with investors.

Much of that trading was pre-market but the Top 50 was less affected because as a gross index, share prices include dividends.

The new index also readjusts the weightings of many stocks according to the liquidity of their shares on issue. Telecom rises from around 21 per cent of the old index to 27 per cent under the new.

Overall there didn't "appear to be any major portfolio things going on...(but) it's a pleasing start to March," said ASB Securities broker Andrew Kelleher.

Outside Telecom, some top 10 stocks did well - Carter Holt Harvey rose 5c to 178 , as strong migration figures out today lengthened the expected lifespan of the residential building boom.

Likewise, Fletcher Building was up 7c to 361, The Warehouse rose 14c to 570, and Baycorp clawed back 8c to 115 after being hammered last week for a post-merger first half loss of $A11.9 million ($NZ13.0 million).

Publishing company INL rose 5c to 320, while profit-takers moved in on casino operator Sky City and Auckland Airport after solid first half results last week. Sky City eased 5c to 870 on heavy trading and Auckland Airport shed 14c to 532 on moderate volume.

AMP continued its journey south, losing another 55c to a new record low of 720. Lion Nathan rose 15c to 580 as its brewery rival DB fell 13c to 587.

The market got little lead from Wall Street on Friday where the Dow Jones Industrial Average rose just 6.09 points to 7,891.

However, Mr Kelleher said it would be an interesting night offshore tonight after the capture of an allegedly key al Qaeda figure and Turkey's decision not to let US troops in.

"There's a case for markets to be more positive this evening. Possibly we're getting down into the business end of whether or not whatever's going to happen with Iraq happening," said Mr Kelleher.

"Whichever way it actually swings, all the market wants to know is what will happen."

There were 48 rises and 38 falls among the 128 stocks traded.

- NZPA