NZ stocks: Market falls in early trading

The sharemarket got off to a sluggish start today, as Telecom pulled the benchmark index down.

By 11.34am today, the benchmark NZSX-50 gross index fell 2.54 points to 2690.86, while the NZSX-All capital index was down 1.46 points at 902.53.

First NZ Capital research manager Barry Lindsay said the softer market was to be expected on the back of weaker global markets on Friday.

He said although a number of top stocks had posted marginal gains this morning, these were offset by fall in Telecom, which was down 3c at 582.

Telecom posted turnover worth $18.6 million by 11.34am, out of total market turnover worth $35.4 million.

Of the 120 stocks traded there were 28 rises and 31 falls.

Infratil was down 8c at 307, after its new 1 for 5 warrants were quoted this morning.

Air New Zealand was unchanged at 41c. The national carrier's appeal against the Commerce Commission's refusal to allow it to form an alliance with Qantas started in the High Court in Auckland today. Under the proposed alliance Qantas would buy a 22.5 percent stake in Air New Zealand, while Air New Zealand would manage flights for both airlines into and out of New Zealand.

The case is expected to take up to four weeks.

Wrightson was down 1c at 139, after announcing late Friday it had reached an amicable agreement with outgoing managing director Allan Freeth.

Carter Holt Harvey was up 1c at 207, after confirming on Friday the purchase of an 85 percent stake in the Chinese wood panels manufacturer, Plantation Timber Products, for an undisclosed sum.

Internet retailer Beauty Direct has told the stock exchange it is negotiating to buy a "number of related businesses operating under the one brand" for a backdoor listing of those businesses.

Reports cite Life Pharmacy as a potential target. Beauty Direct shares were unchanged this morning at 10c.

Stocks to have moved by 11.34am today included AMP up 7c at 695, Fisher & Paykel Healthcare up 7c at 1315, Fletcher Building up 2c at 462, Toll NZ up 5c at 175, Pacific Retail down 5c at 210, The Warehouse down 1c at 420, Sanford up 4c at 464 and Mainfreight down 2c at 192.

The US market is closed today for the Independence Day public holiday.

On Friday in the US, the Dow Jones industrial average ended down 51.33 points at 10,282.83, while the Standard & Poor's 500 Index was down 3.56 points at 1,125.38 and the Nasdaq Composite Index was down 8.89 points at 2,006.66.

- NZPA