NZ stocks: Market drifts lower on light turnover

The New Zealand sharemarket's benchmark indices eased on opening this morning as some stocks succumbed to profit taking, a dealer said.

By 11.30am NZSX-50 gross index was 4.6 points or 0.2 per cent lower at 2292.9 per cent lower, while the NZSX-40 capital index was 5 points or 0.22 per cent lower at 2195.35. Turnover was $33 million.

Market leaders Telecom, Carter Holt Harvey, Contact Energy and Fletcher Building all eased initially but Telecom picked up and was a cent higher at 508 by 11.30am. Telecom was holding its annual general meeting in Auckland this morning.

By 11.30am Carter Holt Harvey was down 3c to 175, Contact Energy was down 3c to 511, and Fletcher Building was down a cent to 425.

Amro Craigs Equities retail adviser Bryon Burke said although the market had opened on a weaker note "as profit taking continues", it was on light turnover "which is encouraging".

"It looks like we've seen the low point for the market today early this morning", he said.

On oversesas markets yesterday, stocks fell in New York with the Dow Jones industrial average dropped 34 points, or 0.35 per cent, to 9621, and the broader Standard & Poor's 500 Index slipped 6 points, or 0.55 per cent, to 1034. Britain's top shares reversed after an earlier rally to end nearly flat for a third straight day. The FTSE 100 share index closed down 3.4 points or 0.08 per cent to 4,268.6.

European stocks closed flat and Japan's Nikkei index ended down 278.13 points or 2.57 per cent at 10,542.20.

Back on the New Zealand market Fletcher Forests was down a cent to 130 by 11.30am. The company yesterday announced it was paying $8.5 million to the US based Campbell Group with which it has signed a letter of intent for the sale of its forest estates.

The fee gives Fletcher Forests the right to negotiate an alternative offer with Kiwi Forests Group, and opens the door for an improved offer from Campbell Group.

Stocks to move by 11.30am today included: Air NZ down a cent to 52, Auckland International Airport down 4c to 645, Baycorp Advantage up a cent to 259, Briscoe Group down a cent to 197, Freightways down a cent to 180, Genesis Energy up 4c to 115, Hellaby Holdings up a cent to 505, Independent Newspapers down 4c to 456, NZX down 6c to 425, Ports of Auckland down 5c to 860, Port of Tauranga up 5c to 430, Promina up 3c to 352, Sanford up 4c to 525, Southport up 8c to 158, Steel & Tube up 2c to 380, Telstra down 3c to 562, Tourism Holdings Ltd up 2c to 153, and the Warehouse up 3c to 573.

There were 32 rises and 30 falls on 109 stocks traded by 11.30am.

- NZPA