Market hits new high then falls on lack of leads

File photo / Richard Robinson

The New Zealand sharemarket briefly edged up to a new 29-month high during the session yesterday but ended with a touch of pessimism, as the market heads into the results season.

The NZX-50 index closed down 4.24 points at 3383.17, having crossed 3389 earlier - its highest level since September 2008 when the global financial crisis hit markets.

"Marginal negative day, and the Australian market's slightly positive so we're not getting too many leads from offshore," said First NZ Capital director Philip Hunter.

"I think the general tone is people are waiting for the results season just to see how companies have fared over the last six months or so, but probably more importantly what their forward-looking statements are in terms of activity, so that will be the big focus of the market for the next couple of weeks really."

On Monday the index rose 19.6 points as Fletcher Building shares hit a three-month high, attributed to Fletcher Building's likely inclusion in the S&P/ASX 200 index after taking over Crane Group.

Fletcher Building closed a cent lower yesterday at $8.22.

Telecom has been hurt by expectations of a decline in its weighting in the S&P/ASX 200 index, and its 3c fall yesterday to a nearly one-month low of $2.18 followed a similar fall on Monday.

Telecom reports its first-half results on Friday, preceded by Steel and Tube, Mainfreight and AMP Office Trust tomorrow.

Among other blue chips, Contact Energy rose 7c to $6.32, Auckland Airport was a cent higher at $2.27, Sky TV gained 6c to $5.46, and Sky City was down a cent at $3.35.

Discount retailer The Warehouse fell 2c to $3.63 after the company said it had made an internal appointment to chief executive after Ian Morrice leaves the company later this year. Mark Powell will take over.

A handful of stocks rose, including Pumpkin Patch, up a cent at $1.50, NZ Refining, up 3c at $4.96, and Kathmandu, 2c higher at $2.09.

Steel & Tube fell 5c to $2.30, Port of Tauranga lost 6c to $7.68 and Rakon was down 2c at $1.14.

Across the Tasman, the S&P/ASX 200 Index was up 0.5 per cent at 4891.

Earlier in the United States, stocks closed with solid gains after several big acquisitions were announced.

- NZPA