NZ stocks: Market eases in morning trade

12.00pm

The sharemarket eased in morning business today but investors were unwilling to trade leading stocks significantly in either direction.

Relatively, the local market performed better than overseas markets, which dipped on concerns about the price of oil.

Turnover was light with 10 million shares changing hands at a value of $29 million by 11.45am. Telecom topped the turnover as usual with $8.5m worth of shares traded. It was down 1c at 599.

It was followed by Auckland Airport on $4.8m, which left its share price unmoved on 727.

The benchmark NZSX-50 gross index dipped 2.99 points to 2851.45 while the NZSX-All capital index was down 1.75 points to 948.24.

Scott Technology fell 21c to 360 after the Dunedin company's annual result yesterday fulfilled the prophecy it made this time last year of tougher international trading conditions cutting into what was then a record-breaking performance. Sales fell 24.8 per cent and net profit fell 34 per cent to $3.7m.

Mainfreight was one of the few moves of note. It fell 5c to 195 on volume of half a million shares.

Taylor Group lifted 7c to 242 on light turnover.

Number two stock Carter Holt Harvey, fell 1c to 234 and Fletcher Building fell 3c to 577.

There was still good interest in Powerco with 3m shares traded and the price holding steady. It rose 2c to 212 yesterday after the Takeovers Panel cleared Prime Infrastructure's takeover offer for the company.

The panel had convened a meeting to determine if a side deal set up by Powerco's majority shareholders favoured them over other shareholders. Brokers said the arbitrage traders were still active, making money on the difference between the current price and Prime's 215/share offer.

Freightways fell another 1c to 254 after Citigroup yesterday cut its 12-month price target for Freightways from 288 to 269. The downgrade came after news Toll Holdings plans to open its own courier business in New Zealand, which could impact Freightways' market share.

Meanwhile Toll NZ was steady after losing 5c to 270 when the Securities Commission said it was filing insider trading proceedings against six former owners and executives.

NGC added 1c to yesterday's 2c gain to be at 304, after it declared a special 9cps dividend to use available tax credits before Australian Gas Light Co sells its 66 per cent stake to Vector. AGL has agreed to sell its stake to Vector at $3/share, triggering a full takeover offer by Vector of NGC.

The Warehouse was down 3c to 412.

In all, there were 35 stocks up and 29 down among the 125 traded.

On Wall Street, stocks fell as oil prices climbed and a sell-off in metals markets hurt shares in commodity-related companies such as No. 1 aluminum producer Alcoa Inc.

The Dow Jones industrial average fell 74.85 points to 10,002.33. The Standard & Poor's 500 Index fell 8.19 points, or 0.73 per cent, at 1,113.65 and the technology-laced Nasdaq Composite Index was down 4.64 points to 1,920.53.

- NZPA