12.20pm
The New Zealand sharemarket ground lower today, depressed by gloom in international markets.
On the surface, the news was good for equities. Data showed US worker productivity raced ahead at its fastest clip in almost 19 years and the Federal Reserve stood pat on interest rates.
However, the Fed's decision reinforced investor
fears of a tepid economic recovery and stocks retreated.
The blue-chip Dow Jones industrial average ended up 28.51 points, or 0.29 per cent, at 9,836.55, while the Nasdaq Composite Index lost 4.66 points to 1,573.82.
The NZSE-40 Capital Index was down 4.95 points at 2047.20 at 11am on moderate volume worth $22.8 million.
"Global markets look very ordinary," ABN Amro broker Nigel Scott said.
Companies which failed to meet expectations were being severely punished and any profit warning was getting "the machine gun treatment", he said.
"The market is very reactive to any comments."
Telecom, which reports its third quarter result on Friday, was down 1c at 481. Its morning trough of 477 was near a seven-month low.
It is expected to post a slight improvement in underlying profit but has been depressed by continuing negative sentiment on telcos worldwide.
The Warehouse was sold 9c to 730 after being sold 6c yesterday. Mr Scott said it was not in reaction to yesterday's quarterly sales figures, which were strong. The stock had been pumped up and investors realised it was in a development phase in Australia, where margins were skinny.
AMP continued to suffer after its result yesterday -- down 65c to 2050. It dropped 4.4 per cent yesterday to an eight month low.
Losers outweighted gainers by 36 to 14 among the 99 stocks traded.
Those to fall included: Baycorp Advantage, 18c to 453, Contact, 3c to 405, Genesis, 4c to 281, Restaurant Brands, 1c to 209, Software of Excellence, 8c to 232 and Tranz Rail, 6c to 364.
Westpac NZ gained 15c to 1830 while Fisher & Paykel Healthcare rose 5c to 915.
- NZPA
