NZ sharemarket closes below new 29-month high

The New Zealand sharemarket briefly edged up to a new 29-month high during the session today but ended with a touch of pessimism, as the market heads into the results season.

The benchmark NZX-50 index closed down 4.24 points at 3383.17, having crossed 3389 earlier -- its highest level since September 2008 when the global financial crisis hit markets.

"It was a marginal negative day and the Australian market was slightly positive so we're not getting too many leads from offshore," First NZ Capital director Philip Hunter said. "I think the general tone is that people are waiting for the results season, just to see how companies have fared over the last six months or so.

"But probably more important is what their forward-looking statements are in terms of activity, so that will be the big focus of the market for the next couple of weeks."

Yesterday the index rose 19.6 points as Fletcher Building shares hit a three-month high, attributed to Fletcher Building's likely inclusion in the S&P/ASX 200 index after taking over Crane Group. Fletcher Building closed a cent lower today at 822.

Telecom has been hurt by expectations of a decline in its weighting in the S&P/ASX 200 index, and its 3c fall today to a nearly one-month low of 218 followed a similar fall yesterday. Telecom reports its first-half results on Friday, preceded by Steel & Tube, Mainfreight and AMP Office Trust on Thursday.

Among other blue chips, Contact Energy rose 7c to 632, Auckland Airport was a cent higher at 227, Sky TV gained 6c to 546, and Sky City was down a cent at 335.

Discount retailer The Warehouse fell 2c to 363 after the company said it had made an internal appointment to chief executive after Ian Morrice left the company later this year. Mark Powell, head of Warehouse Stationery, will take over.

A handful of stocks rose, including Pumpkin Patch, up a cent at 150, NZ Refining, up 3c at 496, and Kathmandu Holdings, 2c higher at 209.

Steel &Tube fell 5c to 230, Port of Tauranga lost 6c to 768 and Rakon was down 2c at 114.

Across the Tasman, the S&P/ASX 200 Index was up 0.5% at 4891.