NZ stocks: Market eases on heavy turnover

12.00pm

The New Zealand sharemarket kicked off the week slightly in the red following a dismal performance by offshore markets over the weekend.

The benchmark NZSE-40 capital index was 4.73 points, or 0.15 per cent, easier at 1974.58 by 11am. Turnover was solid for a Monday, with shares worth $73 million changing hands as the last part of Verizon's Telecom selldown was transacted.

Telecom was flat at 480 on heavy turnover of $57 million -- most of that pre-market -- as the last of the institutional investors that jumped on board when cornerstone shareholder Verizon sold out last week processed their holdings.

In the United States on Friday bearish analyst forecasts for General Electric Co and a profit warning from tobacco giant Philip Morris Co Inc sent stocks tumbling, pushing market gauges lower for the fifth straight week.

The blue-chip Dow Jones average was the hardest hit, tumbling 295.67 points, or 3.70 per cent, to 7701.45. The broader Standard & Poor's 500 Index fell 27.58 points, or 3.23 per cent, at 827.37, while the technology-laced Nasdaq Composite Index erased an early gain to fall 22.46 points, or 1.84 per cent, to 1199.15.

Here, brokers were expecting a busy day with it being both the end of the month and the end of the September quarter.

"People will be doing a bit of book window-dressing," ASB Securities dealer Andrew Kelleher said.

Among the top 40 stocks Auckland International Airport eased a cent to 432, Carter Holt Harvey dipped 3c to 157, Fletcher Building was 2c lower at 299, Sky City added 10c to 720, The Warehouse was 5c higher at 715, Fisher and Paykel Healthcare added 10c to 980 and its sister Appliance division was firm at 1020.

Falls outnumbered rises by 35 to 19 among the 88 stocks traded so far.

Financial services giant AMP eased 5c to 1415. The troubled company said today it has appointed acting chief executive Andrew Mohl to the position permanently, and added the title of managing director.

Mr Mohl, who has been acting chief executive since former CEO Paul Batchelor stepped down suddenly last Monday, will take up the reins from October 7.

Mr Batchelor left the company amid criticism about its poorly performing Pearl unit in Britain.

AMP also said today it would increase the size of its A$750 billion ($876.16 billion) preferred securities offer to A$1.15 billion.

In other news Lyttelton Port today halted trading in its shares pending an announcement.

The halt was called after an article in The Press on Saturday reported that Lyttelton had missed out on P&O Nedlloyd's new "supership" line.

Nedlloyd had been expected today to announce its choice of ports for the weekly "supership" container line -- the largest capacity service to call on New Zealand yet -- but the announcement has been delayed until midweek.

Only three out of the six port companies, which have been desperately trying to dredge up a reason why the shipping company should call on them, are expected to get the nod and there has been strong speculation Lyttelton would lose out to Dunedin's Port Chalmers.

Lyttelton Port shares closed on Friday at $1.55 and were quoted at $1.50/$1.53 this morning before the halt.

Fellow port companies Ports of Auckland and Port of Tauranga were lower. The Auckland port -- New Zealand's biggest -- eased 5c to 620, while Tauranga was down 10c at 830.

- NZPA