KEY POINTS:
The sharemarket started the month drifting lower when trading began today.
The NZSX-50 benchmark index was down 3.62 points to 4298.74 at 10.20am on heavy turnover valued at $77 million. There was good turnover in Telecom and Fletcher Building.
Top stock Telecom eased 1c to 484. Yesterday the Government said a new auction process of radio spectrum suitable for WiMax wireless broadband services will fast-track the rollout of the technology. It also said it was sticking with its three-way separation plan rather than Telecom's alternative to sell off its network.
Second-ranked stock Fletcher Building lost 3c of the 19c it gained yesterday to be on 1295.
PGG Wrightson fell 12c to 175 after the rural services company said difficult trading conditions meant annual profit would be at the lower end of its forecast range.
At its interim result, PGG Wrightson forecast a range for annual net profit, after tax and before amortisation, of between $39 million and $45m, including one-off gains of $8m.
Rakon fell 5c to 540.
NZX rose 5c to 1125 after yesterday announcing it was getting into the news business through the purchase of internet media company NewsRoom.
Pod was up 2c to 49c as the board of the textile design company considered two offers, one a full takeover bid at 50c and the other for business unit Designer Textiles International (DTI).
Kidicorp was up 4.5c to 23 after a major Kidicorp shareholder associated with chief executive Wayne Wright yesterday launched a takeover offer for the childcare company at 24c per share.
The bid values the company at $42.5 million.
TrustPower fell 5c to 825.
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On Wall Street, US stocks closed little changed though the S&P 500 edged higher for a record close, helped by plans for a $6.8 billion takeover in the financial sector and data pointing to strength in industrial activity.
The Dow Jones industrial average fell 5.44 points to 13,627.64. The Standard & Poor's 500 Index rose 0.34 of a point to 1,530.57 and the Nasdaq Composite Index rose 11.88 points to 2,604.47.
For the month, the Dow rose 4.32 per cent, the S&P 500 advanced 3.24 per cent and Nasdaq gained 3.14 per cent.
- NZPA