MARKET CLOSE: Sharemarket little changed, Telecom volume big

Friday 10th December 2010

The New Zealand sharemarket dipped today care of a fairly broad-based but mild selloff against a backdrop of mixed economic news.

The benchmark NZX-50 index closed down 7.635 points, or 0.233 percent, at 3272.921, having yesterday closed down 13.8 points. There were 31 rises and 46 falls among the 113 stocks traded.

Big turnover in Telecom boosted volume. Shares worth $300.5 million traded overall, of which $146.26 million was in Telecom shares. Brokers said about 68.9 million Telecom shares traded in crosses, or off market, and only a million shares traded on market. The big volume may reflect a portfolio change by an international investor.

Telecom (NZX: TEL ) slipped 1c to 208 after dropping 6c yesterday, while Fletcher Building (NZX: FBU ) , which also lost 6c yesterday, was unchanged at 782. Contact Energy (NZX: CEN ) rose 2c to 615.

"Across Asia, regional markets are all seeing profit taking to end the week despite the moderately positive leads from US markets," Ben Potter at IG Markets.

Investors are nervous that China may tighten monetary policy after newspapers reported inflation rose in November. In New Zealand, farmers welcomed news that Fonterra Cooperative Group is lifting its milk price forecast but said production from key dairy farming areas is likely to be sharply down due to the spring drought.

Guinness Peat Group (NZX: GPG ) was unchanged at 70 as Sir Ron Brierley stood down from his role as chairman at the close of business today, while remaining on the board as a non-executive director. Former Macquarie Bank deputy chairman Mark Johnson takes over as chairman.

SkyCity (NZX: SKC ) was also unchanged at 313 on a day it briefed investors.

Profit-taking affected some stocks that have been in favour. Ebos (NZX: EBO ) fell 13c to 732 and Mainfreight (NZX: MFT ) fell 8c to 767. Ryman Healthcare (NZX: RYM ) fell 1c to 223 and Nuplex (NZX: NPX ) fell 1c to 352.

Restaurant Brands (NZX: RBD ) fell 6c to 261, The Warehouse (NZX: WHS ) fell 5c to 375 and Hellaby (NZX: HBY ) fell 3c to 511. NZ Farming Systems Uruguay (NZX: NZS ) fell 5c to 58.

SkyTV (NZX: SKT ) fell 3c to 511 and Methven (NZX: MVN ) fell 1c to 168.

Property for Industry (NZX: PFI ) fell 2c to 111, AMP (NZX: AMP ) fell 3c to 692 and Goodman Property (NZX: GMT ) fell 1c to 94. Kiwi Income Property Trust (NZX: KIP ) fell 1c to 99.

Bathurst Resources (NZX: BTU ) rose 4c to 90 after announcing its first offtake agreement yesterday. NZOG (NZX: NZO ) fell 2c to 89 and Pike River Coal remains suspended.

In the US, stocks indices ended little changed as a recent rise in bond yields and uncertainty over tax-cut legislation unsettled investors.

The Dow Jones industrial average dropped 0.02% to 11,370.13. The Standard & Poor's 500 Index gained 0.4% to 1233.00, and the Nasdaq Composite Index gained 0.3% to 2616.67.

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