KEY POINTS:
New Zealand's sharemarket was virtually flat today, dragged lower by continued uncertainty about Telecom's regulatory outlook.
The NZSX-50 index closed down just 3.8 points or 0.09 per cent to 4164.30. Total turnover was a moderate $121 million.
Telecom fell 13c to 474, after a near 4 per cent surge yesterday on news the Government would reauction certain broadcast spectrum.
Brokers cited uncertainty over the size of a promised capital return and news that Telecom was offering to spin off its copper wire network rather than accept the latest regulatory proposal.
Telecom's statement from chairman Wayne Boyd had been "reasonably aggressive," and there were fears of a stalemate with the regulator, Goldman Sachs JB Were broker Jeremy Coe said.
"I think what could probably be construed from his address is that they are looking at ownership separation and there are a number of subsequent effects that would result from that.
"There's lots for investors to sort through and nothing clear on the table yet."
Elsewhere, Fletcher Building climbed 24c to 1148 on moderate volume after indicating it was looking at buying a business for between $700-$800 million within the next year.
"No word as to what that business would be, it's certainly not a new topic so I don't think that's really the driver," Mr Coe said.
Contact gained 5c to 905, Auckland Airport nosed up 3c to 243, and the Warehouse gained 2c to 717.
The Fisher & Paykel twins, Healthcare and Appliances, were up 2c to 368 and down 3c to 362 respectively, while Sky City inched up 2c to 470.
Mr Coe noted that GPG, which was off a cent to 228 today, continued to struggle to gain traction as profitability in its Coats subsidiary got further pushed out.
Port of Tauranga gained 10c to 635 as speculation continued about which ports shipping giant Maersk might be interested in buying.
"Everyone's basically thinking that consolidation is absolutely on the cards," Mr Coe said.
- NZPA