NZ stocks: Market falls after nervousness in US

12.30pm

The benchmark New Zealand stock index headed into the red today after nervousness in the United States caused a decline on Wall St.

By late morning the NZSX-50 gross index was down 6.95 points, or 0.31 per cent, at 2206.79, while the top-40 index lost 0.27 per cent to 2122.16.

Topping turnover of 6.56 million stocks, valued at $21.26 million, was Telecom's $7.24 million worth of shares traded.

In the US, footage of what was believed to be al Qaeda leader Osama bin Laden ahead of the September 11 anniversary caused the biggest fall in nearly two months for the tech-packed Nasdaq composite index, which dropped 49.55 points, or 2.64 per cent, to 1823.88.

The blue-chip Dow Jones industrial average fell 86.74 points, or 0.91 per cent, to 9420.46, and the broad Standard & Poor's 500 lost 12.24 points, or 1.20 per cent, to 1010.93.

ABN Amro Craigs retail equities advisor Nigel Scott said the New Zealand market was quiet, with most movements on low volumes.

"The only real volume so far today, and there's been quite a few crossings, has been in the Independent Newspapers Ltd camp, in a higher price range than previously," Mr Scott said.

INL, which sold its New Zealand newspaper assets earlier this year for $1.2 billion, has launched a takeover offer for the third of Sky TV it does not own.

INL is offering $3.35 in cash for each Sky share, plus three INL shares for every 10 Sky shares.

"People are obviously going to follow the Sky TV camp, or you have people who may move away from the INL camp due to the nature of the stock -- it may not be a dividend payer going forward.

"Clearly there's a lot of corporate action still to happen for INL and Sky shareholders ..." Mr Scott said.

INL shares were up 1c at 449, and Sky TV shares lost 5c to 475.

Telecom fell 3c to 503, near the level its American Depository Receipts traded on Wall St.

"The market itself is still drifting -- not drifting aggressively, just drifting," he said.

Auckland Airport lost 2c to 638, Baycorp Advantage was down 4c at 242, Carter Holt Harvey lost 1c to 166, Promina was down 2c at 331, Sky City fell 3c to 875, and Tower lost 2c to 121.

Pacific Retail Group was down 20c at 205 on light turnover of 8360 stocks.

Fisher & Paykel Healthcare was up 9c at 1230, Fletcher Building rose 1c to 416, Briscoe rose 1c to 173, Postie Plus rose 2c to 116, Tourism Holdings Ltd gained 1c to 137, and Turners Auctions rose 2c to 385.

There were 41 falls and 27 rises on the 112 stocks traded.

- NZPA