KEY POINTS:
The sharemarket closed flat today despite another interest rate rise from Reserve Bank governor Alan Bollard, as the NZ dollar fell on the belief the end of tightening is in sight.
Dr Bollard indicated today's hike of the official cash rate to 8.25 per cent would be the last in the current round. That pushed the kiwi down half a US cent to below US80c, the right direction for exporters.
The benchmark NZSX-50 index ended up just 0.8 points at 4325.78 on turnover totalling $179.7 million. Falls outnumbered rises 56 to 52.
"It was pretty directionless, no real reaction to the increase in rates this morning," said David Price of Forsyth Barr. "It's pretty quiet as we drift into the results season."
Top stock Telecom was down 5c at 482 ahead of its annual result next Friday. Telecom has held to an extremely tight range in the last week, with moderate volumes.
"We're probably heading toward an environment ... with a flat to decreasing profit coupled with an uncertain regulatory outcome and those two things would probably make me a little more cautious. We've got a valuation certainly below the share price," Mr Price said.
Contact Energy hit another record high today of 970, and closed up 11c at 965.
"We think they are very cheap and (have) a valuation north of $10. It's hard to see the pricing track is not going to be higher for energy prices."
Trading was mixed among the leaders. Fletcher Building fell 3c to 1298, Sky City was up 8c at 505, Sky TV fell 2c to 565, F&P Healthcare was up 4c at 324, and F&P Appliances lost 2c to 365.
Auckland Airport lost 4c to 334 on 2.3 million worth of shares traded.
Trustpower was down 15c at 850 after a 22 per cent rise in quarterly net profit, including a $7.4m tax-related gain. The energy generator and retailer said hydro inflows and wholesale power prices had been weak in the first quarter.
Air New Zealand was flat at 255, Mainfreight rose 9c to 766, Nuplex was up 10c at 701, and Freightways was steady at 410.
Tourism Holdings was flat at 250 following the failed takeover bid by MFS Living and Leisure.
Among retailers, Michael Hill was up 15c at 935, Pumpkin Patch rose 5c to 345, The Warehouse was unchanged at 607, and Hallenstein Glasson fell 5c to 460.
Dual-listed stocks were mixed, with ANZ down 10c at 3200, AMP up 14c at 1140, Westpac up 10c at 2920, and Lion Nathan flat at 980 after confirming its annual profit forecast and announcing the sale of its Auckland brewery for $162 million.
- NZPA