NZ stocks: International markets drag market down

12.00pm

The sharemarket fell in early trading this morning, dragged down by international markets.

At 11.30am, the benchmark NZSX-50 Gross index slipped 6.50 points to 2582.46, while the NZSX-All capital index was down 1.56 points at 876.10.

Bellwether stock Telecom fell 4c to 560 on turnover worth $22.3 million.

Total market turnover by 11.30am was worth $43.5 million.

"There were very weak markets offshore overnight with the continuing theme of inflationary pressures offshore, particularly from the rising price of oil. That, of course, translates in investors' minds to the likelihood of higher rates," said Matt Willis of ABN Amro Craigs.

Mr Willis said these concerns and global political worries flowed through to the New Zealand market today.

International markets fell yesterday after a key figure in Iraq's new government was killed, sending oil prices soaring.

The Nasdaq closed at its lowest level since October and the Dow and the S&P 500 hit their lowest closes since December.

On the domestic front this morning, The Warehouse was up 3c at 440, after the appointment of Ian Morrice as its new chief executive officer. Mr Morrice currently works for the British-based DIY retailer B&Q Plc.

Lion Nathan was down 11c at 726. The company reported a net profit of A$118 million ($137.08 million) for the half year ended March 31, but said trading conditions in New Zealand had been tough.

Yesterday the brewer confirmed a deal to manufacture, import, market and sell Heineken in Australia. As a result DB Breweries is to stop producing Heineken keg beer for the Australian market, but will continue to produce Heineken for New Zealand.

DB was down 17c at 798 at 11.30am.

Listed property fund AMP New Zealand Office Trust (Anzo) was unchanged at 83c after posting a net surplus of $26.3 million for the nine months to March 31 this year, up 2.95 per cent on the same period last year.

Restaurant Brands slipped 4c to 133.

Mr Willis said the $1.50 "farcical" takeover offer by King Win Laurel had introduced volatility to the stock.

The offer has now been withdrawn at the request of the Takeovers Panel.

Of the 119 stocks traded by 11.30am, there were 26 rises and 45 falls.

Other stocks on the move by 11.30am included: Air New Zealand down 1c at 41, Auckland International Airport up 1c at 655, Carter Holt Harvey up 4c at 211, Cavalier down 5c at 485, Promina down 7c at 387, Tenon up 1c at 188, Tower down 4c at 145, Waste Management down 8c at 452, Fisher & Paykel Appliances up 2c at 449, Michael Hill Jeweller down 5c at 585, Sky City Entertainment down 3c at 455, Infratil down 10c at 310 and Vertex down 4c at 155.

- NZPA