Wellington, Feb 10 NZPA - The New Zealand sharemarket drifted downwards today as Telecom slipped 6 cents and investors bided their time.

The benchmark NZSX-50 index closed at 5pm at 2750.05, down 16.510 points, or 0.6 percent from 2766.56.

There were 34 rises and 45 falls. Just over 44.5 million stocks were traded, worth $98 million.

Market leader Telecom had the biggest influence on the fall, down 6c, or 2.23 percent, to 263, on 18.8 million shares, worth $50m, traded.

"That stock has been outperforming the market in recent times but has just given up a wee bit of ground," said Grant Williamson of Hamilton, Hindin, Greene.

"A slightly negative day" with low volumes was the result of c autious investors taking a wait and see attitude, he said.

"With the earnings season very close now I think investors are just waiting on the sidelines to see what the major companies like Telecom and Fletcher Building are going to report in the way of earnings, and more important, what they are going to say going forward."

NZ Farming Systems Uruguay had a bad session, losing 9c, or 13 percent, to 60.

Tower lost 9c, or 5.26 percent, to 162, Telstra dropped 20c, or 4.2 percent, to 456 and Goodman Fielder slipped 7c to 173.

Of the banks, ANZ Banking Group lost 50c, or 3.14 percent, to $15.40 and Westpac shed 60c to $20.30.

Fisher & Paykel Appliances trimmed 3c to 112 and Mainfreight was down 10c to 386.

Of the stocks making ground Lion Nathan was up 50c to $10.50, Auckland Airport was up 4c to 192 and Hallenstein Glassons up 4c to 222.

No other stocks made gains of more than 2 or 3c.

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