NZ stocks: Market closes lower

A new listing at a premium is what every market wants and the NZX got one today with the debut of outdoor retailer Kathmandu.

Kathmandu shares started at 222 and closed at 223, which is a premium to the 213 price the shares were sold at in the initial public offer (IPO) - one of a number making their way to this market.

Stephen Wright at ASB Securities said Kathmandu was priced at the low end of an indicative range, which helped ensure a premium on listing. Volumes were big, particularly in the Australian market where the stock also trades.

Typically around 10 to 15 per cent of shares sold in an IPO trade on listing but the figure in Australia was around 25 per cent.

"It is always positive when a new issue lists but the rest of the market was fairly lacklustre," said Mr Wright.

The benchmark NZSX-50 index closed down 13.941 points, or 0.439 per cent, at 3158.144.

Turnover was worth $72.37 million. There were 29 rises and 43 falls among the 109 stocks traded.

Shares in retailer The Warehouse Group were down 19c to 411 after reporting first quarter sales down 1 per cent.

The figures were in line with quarterly retail sales data this week, Mr Wright said.

"Consumers are not putting their hands in their pockets just yet," he said. The sector is entering the key Christmas trading period.

Mainfreight rose 10c to 565 and Freightways rose 6c to 314.

Infratil rose 1c to 155 and Auckland Airport rose 188.

Cavalier Carpets fell 7c to 246 after its annual meeting this week.

Among the leaders, Telecom rose 1c to 256, Contact fell 15c to 594 and Fletcher Building fell 8c to 800.

NZX rose 10c to 820, TrustPower rose 3c to 750 and SkyTV rose 2c to 495.

Fisher and Paykel Appliances fell 1c to 65 and the Healthcare stock fell 2c to 310.

Pike River Coal fell 2c to 102, NZOG fell 3c to 169 and NZ Refining fell 5c to 515.

In the United States, stocks fell broadly as a stronger US dollar weighed on commodity-linked shares and a guarded outlook from Wal-Mart Stores Inc led to worries about consumer spending.

The Dow Jones industrial average dropped 91.98 points, or 0.89 per cent, to 10,199.28. The Standard & Poor's 500 Index fell 10.93 points, or 0.99 per cent, to 1087.58. The Nasdaq Composite Index lost 16.13 points, or 0.74 per cent, to 2150.77.

- NZPA