12.00pm
The sharemarket held steady today in morning trading despite developments in the Iraq war which indicated the war may not be as straightforward as markets had been expecting.
The NZ50 gross index was up 5.74 points at 1913.77 while the NZSE 40 capital index was down 6.57 points to 1884.82 at
11.30am.
Accounting for the difference in the two indices, a number of stocks were ex dividend including Auckland International Airport, 9.5cps; Fletcher Building, 9cps; Michael Hill International, 7cps; Nuplex Industries, 9.5 cps; Sky City Entertainment, 21cps; NZ Refining, 50cps. The free-float NZ50 index includes dividends while the NZSE40 strips them out.
First NZ Capital broker James Snell said the local market was awaiting guidance from major markets overseas. Some profit-taking overseas after an "exceptional" week could be expected, although the 20 per cent pullback in oil prices over the week was a very encouraging sign.
"It's a big cost factor that takes the pressure off corporate earnings."
He said markets were well aware that even President George W Bush was warning the war would not be all over quickly. However, they took some comfort from the president's advice that the fighting was still on track despite Iraqi resistance inflicting casualties and taking prisoners.
ABN Amro Craigs head of equities Byron Burke said it would be a brave person to buy shares in the New Zealand market at present.
"You'd expect some profit-taking and a little bit of negative reaction to the weekend war events on Wall Street on Monday," he said.
The US market had its best week in over 20 years last week, with the Dow Jones Industrials up 8.4 per cent, while the British market rallied a massive 17 per cent.
Last week's good volumes continued here this morning with some $31 million turned over.
Sky City Entertainment was down 2c more than the 21c dividend it shed, to 800. Investors are continuing to show nervousness about the effects of proposed anti-smoking legislation.
AMP maintained its rally of last week in response to the pick-up in the London market, where it is heavily exposed. It was up 20c to 845.
Air New Zealand fell back 2c to 52. Despite the recent pullback in oil prices, it said at the weekend it would have to consider raising airfares because of higher fuel costs.
Fletcher Forests rose 2c to 103 after announcing it was splitting the company into two -- forest ownership, and processing, marketing and distribution -- and appointing two new joint chief executives.
The change is expected to reduce the capital employed in its forests by channelling external investment into its forest estates with a consequent return to investors of surplus capital.
Market leader Telecom was up 1c at 433 while Australian counterpart Telstra was down 8c to 435.
Stocks to rise included: Contact Energy, 2c to 447, Fisher & Paykel Healthcare, 9c to 940, North Port, 9c to 269, Westpac NZ, 21c to 1471, and Turners Auction, 5c to 270.
Briscoe recouped 5c of Friday's 41c loss after it failed to meet profit targets. It was trading at 193. The Warehouse was down 7c at 576.
Fletcher Building was down 8c to 346 after losing its 9c dividend.
There were 43 rises and 19 falls among the 109 stocks traded.
- NZPA
12.00pm
The sharemarket held steady today in morning trading despite developments in the Iraq war which indicated the war may not be as straightforward as markets had been expecting.
The NZ50 gross index was up 5.74 points at 1913.77 while the NZSE 40 capital index was down 6.57 points to 1884.82 at
AdvertisementAdvertise with NZME.