High technology manufacturer Rakon took a hit when the sharemarket opened today after lowering its forecast for the year to March.
Rakon shares were down 33c shortly after the market opened to 279, its lowest price since July 2006.
As well as announcing an Indian joint venture today,
Rakon forecast full year earnings before interest, tax, depreciation and amortisation of $23 million to $24 million.
That was down from previous guidance of $27m to $32m.
Despite Rakon's performance, the sharemarket was positive early, helped by a strong overnight performance by US equities.
By 10.25am the benchmark NZSX-50 index was up 10.68 points to 3556.45, having fallen 29.06 points yesterday.
Lines company Vector opened 4c higher at 210, although it soon returned to an unchanged 206, after reporting an 18 per cent fall in its December half year net profit to $90.7 million, which the company said was in line with previous guidance.
Vector also announced an extension of its tie-up with Vodafone that will use another 300km of Vector's fibre network in Auckland.
Following that announcement, top stock Telecom was 2c down early at 395.
Fletcher Building, which fell 28c yesterday despite announcing a 22 per cent increase in net half year profit, bounced back early today with a 24c gain to 911.
Other shares to gain early included Contact Energy up 3c to 758, Freightways up 9c to 339, SkyTV up 4c to 509, and Auckland International Airport up 6c to 270.
Among stocks to fall early were Nuplex down 3c to 535, Port of Tauranga down 5c to 625, Pumpkin Patch down 7c to 209 and Ryman Healthcare down 4c to 171.
US stocks ended sharply higher as an unexpected rise in US retail sales during January eased recession worries, and strong results out of the semiconductor sector lifted technology shares.
Based on the latest available data, the Dow Jones industrial average rose 1.44 per cent, to end unofficially at 12,551.51. The Standard & Poor's 500 Index was up 1.35 per cent at 1367.07. The Nasdaq Composite Index was up 2.32 per cent at 2373.93.
- NZPA
