NZ stocks: Rough night on Wall Street worries market

12.00pm

Trading looked gloomy for the New Zealand sharemarket today after another rough night on Wall Street.

By mid-morning the NZSE-40 capital index was down 10.70 points, or 0.50 per cent, at 2146.99. While turnover was reasonable -- 19.44 million stocks valued at $50.16 million, including 3.65 million Telecom stocks.

Much of the Telecom dealing was off-market crossings, DF Mainland's Greg Arnott said.

Newly listed Skellmax has failed to fire so far, although it was early days for the stock, he said. By mid-morning there was turnover of 684,245 shares, from a total pool of 100 million

"There's still plenty of stock, offered at 117 all morning, so I would suggest there's quite a high element of staggers trying to get out just on disappointment the issue didn't open at a 10 or 15 per cent premium," Mr Arnott said.

Skellmax shares closed at 118 yesterday, 3c above the issue price.

"Even though people thought this wasn't going to be a Briscoes (which listed in December at a 40 per cent premium), they'd factored in 10 or 15 per cent anyway. There's still going to be a bit of volatility there in terms of ironing out the stock," Mr Arnott said.

"Elsewhere, it's extremely quiet this morning."

Telecom was down 3c at 517, after easing in the US overnight, and Australian telco Telstra was down 5c at 530, as the international telecommunications sector remained weak.

Telecom equipment maker Ciena warned in the US that revenues could be "down meaningfully," citing the uncertain telecom environment.

Elsewhere on the market, Auckland International Airport was down 6c at 452, BIL International lost 1c to 64 on low turnover, Carter Holt Harvey shed 2c to 213, and Fletcher Forests preference shares were down 1c at 23 following negative publicity about its deal to purchase the Central North Island Forests.

The Warehouse lost 3c to 780, Fisher & Paykel Healthcare was down 2c at 878 while Appliances lost 5c to 965, Fletcher Building shed 3c to 284, Independent Newspapers Ltd lost 5c to 390 after announcing it had sold some of its Australian papers, and its majority-owned Sky TV was down 10c at 460.

On the up side Pacific Retail was up 4c at 311, Guinness Peat Group gained 1c to 171, casino operator Sky City rose 1c to 651, Tranz Rail was up 3c at 325, and Restaurant Brands gained 3c to 203.

There were 16 falls and 33 rises on the 97 stocks traded.

On Wall St the technology-laced Nasdaq Composite Index fell 46.13 points, or 2.99 per cent, to an eight-month low of 1496.83; the Dow Jones industrial average sank 144.55 points, or 1.49 per cent, to 9561.57; and the broader Standard & Poor's 500 Index slid 17.15 points, or 1.65 per cent, to 1019.99.

- NZPA