Fonterra news fails to lift market

New Zealand shares were little changed today as positive news about a higher Fonterra payout was countered by a rise in the NZ dollar.

Asian stock markets were also little changed as investors focused on weak commodity markets and awaited news from the US Federal Reserve and also the Group of 20 leaders meeting this week.

The benchmark NZSX-50 index closed down 12.792 points, or 0.405 per cent, at 3142.862. Turnover was worth $72.9 million. There were 35 rises and 51 falls among the 113 stocks traded.

"There was good news from the economy point of view but a kiwi dollar up one and a half cents doesn't help exporters," said Stuart Hardie, investment adviser at Craigs Investment Partners.

He said overnight markets were weaker.

Rakon shares are halted while the raises $65m at 110 a share. The shares at 149 ahead of the halt.

Mr Hardie said a profit warning in the announcement was a negative surprise and suggested the company had been savaged by the high NZ dollar. But the company had a big following.

Among the leaders, Fletcher Building rose 6c to 841 and Telecom fell 2c to 261. Contact Energy fell 10c to 581.

Pumpkin Patch, which reports tomorrow, rose 2c to 202.

Restaurant Brands fell 2c to 123 ahead of its second quarter sales report tomorrow.

Air NZ fell 1c to 120 after releasing its August passenger update today. It holds its annual meeting tomorrow.

Fisher and Paykel Appliances fell 2c to 76, NZ Refining fell 12c to 471 and Sanford fell 1c to 499.

Michael Hill fell 2c to 74 and Fisher and Paykel Healthcare fell 5c to 316. Auckland Airport fell 1c to 191.

Hellaby fell 1c to 168 and The Warehouse fell 3c to 407.

SkyCity fell 5c to 313 and Mainfreight fell 10c to 515. GPG fell 1c to 90. Ebos fell 10c to 580.

In the US, the Dow industrials and the S&P 500 index fell on Monday as a drop in oil and other commodity prices hurt energy and materials stocks.

But the Nasdaq rose, buoyed by a broker's upgrade in the biotechnology sector.

Light crude futures fell more than 3 per cent, settling below US$70 ($98.91) a barrel, hurt by concerns about demand despite hopes for economic recovery. The Reuters-Jefferies CRB index of commodities tumbled 2.2 per cent, its largest percentage drop in five weeks.

The Dow Jones industrial average dropped 41.34 points, or 0.42 per cent, to end at 9778.86. The Standard & Poor's 500 Index fell 3.64 points, or 0.34 per cent, to 1064.66. But the Nasdaq Composite Index gained 5.18 points, or 0.24 per cent, to close at 2138.04.

The benchmark S&P 500 has risen 57.4 per cent off a 12-year closing low in early March.

- NZPA