Telecom sinks to new low

Stock market - Close

Telecom shares sank to new a low on the New Zealand sharemarket today, while rises in Fletcher Building, Contact Energy and other leaders helped carry the market higher.

"Telecom is once again making all-time lows. Investors are still concerned about the growth prospects and a possible dividend cut going forward and it does appear to be mainly retail investors selling," said Grant Williamson, director at Hamilton, Hindin, Greene.

Telecom closed on a session low of 211, down 4c from yesterday. Other leading shares were, in contrast, well supported with investors arguably shifting their money into them.

Fletcher Building rose 3c to 835, Contact Energy rose 9c to 612, Auckland Airport rose 4c to 195 and Sky City Entertainment continued a run higher to end up 3c at 342.

The benchmark NZX-50 closed up 9.718 points, or 0.302 percent, at 3230.404, after a 19.7-point gain yesterday. Turnover was worth $95.96 million. There were 36 rises and 37 falls among the 109 stocks traded.

Kathmandu shares closed up 8c at 246 after setting a new all-time high of 250 after the retailer yesterday reported its first interim result since being floated last November.

Other retailers also gained, with The Warehouse up 4c early to 390 and Briscoe Group up 1c to 135.

Sky TV rose 10c to 512 and NZ Refining lifted 6c to 376. Trustpower fell 9c to 710, Infratil dropped 2c to 166, and APN News fell 5c to 300.

NZOG eased a cent to 157 after saying drilling of the Hoki-1 exploration well off the Taranaki coast would be delayed by three weeks by repairs to the drilling rig.

Air NZ eased 2c to 130 after yesterday advising of a new product offering on trans-Tasman and Pacific flights. Mr Williamson said the airline's shares had traded in a narrow range for several months.

Port of Tauranga rose 5c to 705 after yesterday announcing the purchase of Tapper Transport.

In the United States, the Dow industrials advanced for an eighth consecutive session, lifted by a rise in Boeing's stock, while a mixed group of economic figures kept the broader S&P 500 in check.

The Dow Jones industrial average gained 0.42 percent to end at 10,779.17, the Standard & Poor's 500 Index dipped 0.03 percent to 1165.83, and the Nasdaq Composite Index rose 0.1 percent to close at 2391.28.

- NZPA