KEY POINTS:
Firm offshore markets failed to ignite the New Zealand sharemarket today as investors continued to sit on the sidelines.
The NZSX-50 index slipped at the close by 17.1 points or 0.4per cent to 4143.01. This week's light volumes continued, with a $74m total turnover.
Grant Williamson, a partner with Hamilton, Hindin, Greene, described it as "a disappointing day."
"We were firmer early on, but I think the rally in the New Zealand dollar is having some effect on the general tone of the market and there just seems to be a lack of buying interest in the local stocks at the moment."
Other factors were a lack of corporate news, tomorrow's Reserve Bank meeting, and reduced confidence after the finance company crisis.
"Any time there is an improvement in share prices [investors] are looking to maybe reduce their exposure to a number of stocks on the markets and take profits."
Most leading stocks gave up gains, with Telecom down 5c to 440, Contact down 17c to 898 and Fletcher Building down 14c to 1163. Late in the day, a media report said Fletcher's had priced US$325m in long-date bonds in the US.
Some investors appeared to be exiting Pumpkin Patch ahead of its annual result on Monday, the stock falling 6c to 319. The clothing retailer has battled with the strong Kiwi dollar against its Australian income.
Another retailer, the Warehouse, bucked the trend, putting on 15c to 595 ahead of results on Friday and after surprising the market with news of a special dividend.
"They've also indicated that could be ongoing... so the market's very encouraged by that," Mr Williamson said.
Sealegs added 2c to 59 after announcing it had delayed a rights issue after a $11m placement to private investors.
Other moves included Southport up 20c to 300, Metlifecare down 15c to 735 and Mediaworks up 5c to 270, all on thin trade.
Air NZ climbed 4c to 222, Abano put on 6c to 339 and Fisher and Paykel Appliances lost 2c to 360.
Falls narrowly outnumbered rises 52 to 50 on 153 stocks traded.
In contrast with New Zealand, Australian shares were up 0.55 per cent in mid-afternoon trading, on hopes of a US interest rate cut next week.
US stocks also rallied , with the Dow Jones Industrial Average up 180.54 points or 1.38 per cent to a close of 13,308.39.
The Nasdaq composite rocketed 38.36 points (1.50 per cent) to a finish of 2597.47, and the Standard & Poor's 500 index gained 19.79 points (1.36 per cent) to 1471.49.
- NZPA