NZ sharemarket reverses gains

The New Zealand sharemarket reversed much of yesterday's gains in a generally quiet session, with Sky City one of the few to rise despite announcing a one-off hit of $60m on this year's profit due to tax changes.

The benchmark NZX-50 index closed down 14.05 points, or 0.5 per cent, at 3054.19, after yesterday's 21-point gain.

Blue chip stocks took a hit, with top stock Telecom down 4c at 190 and Fletcher Building off 9c at 812, although Contact Energy was up 9c at 594.

Casino operator Sky City gained a cent to 287 after releasing profit guidance, saying it expected its reported net profit after tax for the June year, before a one-off deferred tax adjustment, to be in a range between $136 million and $140m.

The estimate of a $60m hit on annual net profit -- a one-off, non-cash, accounting entry -- followed last month's budget announcements on the accounting value of deferred tax.

Sky TV was down 2c at 492, Infratil lost a cent to 162, and Auckland Airport was unchanged at 194.

Investment company Guinness Peat Group, which is spinning off its Australian assets, was down 2c at 61. Carpetmaker Cavalier Corp fell 7c to 243, Hallenstein Glasson lost 7c to 353, The Warehouse was down 5c at 350, and resthome operator Ryman Healthcare was down 5c at 207 after news it was expanding in to Tauranga.

Among the handful of stocks to gain, NZ Oil and Gas was up 2c at 132, PGG Wrightson rose a cent to 55, Mainfreight was up 3c at 615, and Ports of Tauranga gained 4c to 684.

Dual-listed stocks also declined, with Westpac off 12c at 2926, AMP down 8c at 690 and Telstra down 10c at 405. Across the Tasman, the benchmark S&P/ASX 200 Index was down 1 per cent at 4565.

Earlier in the US, the sharemarket's overall bearish tone eroded initial optimism around the benefits of China's yuan move. Stocks pulled back as investors questioned the effectiveness of what was expected to be a gradual change.

- NZPA