NZ stocks: Sharemarket falls in morning trading

12.25 pm

The New Zealand sharemarket opened slightly higher today but amid more quiet trading and after mixed performances on world sharemarkets overnight.

There appeared to be no reaction to today's 25-basis-point rate cut by the United States Federal Reserve.

Most major markets - except London and Hong Kong - closed with double or three-figure losses.

"Our market was extremely quiet at the opening," Geoff Brown at J P Morgan Chase said.

"About a third of the early volume was in Telecom after an article in the Australian Financial Review about them gaining some more contracts in Australia, which certainly helped the share price initially, although a handful of other companies are showing improvements.

"I think things will stay this quiet for the rest of the day, with no company-specific news around," he said.

At 11am the NZSE-40 index stood at 2046.42 - down 1.18 points - or 0.06 per cent - and below an opening 2049.69.

The NZSE-SCI capital index was 3.70 points - or 0.07 per cent - higher, at 5444.65, against an opening 5440.10.

Turnover at 11am was 5.83 million shares, worth $21.21 million and of the 111 traded, 27 rose but 32 fell.

Market heavyweight Telecom - which has a 23 per cent weighting in the Top 40 index - was a cent higher at 541 and was topping turnover at 11am with 1.39 million shares, worth $7.54 million.

Telstra was 2c lighter at 670 on turnover of 131,564 shares worth $886,742.

Fishing company Sanford, rose 10c to a record 680 after yesterday's 25c gain.

A broker said it was benefiting from its position as a commodity stock, the low New Zealand dollar and a belief that the New Zealand fishing resource was far more sustainable than in Europe.

Contact Energy was a couple of cents higher at 297 and power company, Trustpower was steady at 363.

Tranz Rail was unchanged at 375 compared with a 2001 high of 428 in March and a low of 350 in June.

Natural Gas Corp was a cent lower at 89. It has been punished this month after it issued an earnings warning on June 8.

Casino company Sky City was unchanged 1065, WestpacTrust shed 10c to 1630, Air NZ's domestic A shares were a cent higher at 110 and the freely held B shares lost a cent to 141.

Air NZ chief executive, Gary Toomey, said he was encouraged by his meeting with Australian prime minister John Howard yesterday but said talks with the New Zealand Government were more vital to the beleagured airline's future.

"The primary decision rests with the New Zealand Government," Mr Toomey told NZPA from Canberra.

Finance Minister, Michael Cullen, however, again suggested Government support might not be forthcoming.

Fisher and Paykel was steady at 1180, Brierley Investments was unchanged at 65, PDL Holdings was unmoved at 1040 and Fletcher Challenge spin-off, Rubicon, was steady at 62.

Fletcher Building was a couple of cents higher at 231 and Fletcher Forests was steady at 29.

Meat exporter Richmond was unchanged at 250. A bitter dispute on the Richmond board appeared to have been resolved in compromise at yesterday's board meeting.

PPCS chief executive, Stewart Barnett, was appointed to the board. To counter the influence of the boss of Richmond's main rival, it was agreed Richmond chief executive, John Loughlin, would become managing director no later than December.

Auckland International Airport lost 2c to 375, Lion Nathan was unchanged at 537, as was Montana Group at 480.

Pay TV operator Sky TV was steady at 340, part owner, Independent Newspapers lost 10c to 360 and wood-products firm, Carter Holt Harvey was unchanged at 171.

The Warehouse was a couple of cents lower at 538. The discount retailer said today it was comfortable with analysts' forecasts for its year profit.

The range referred to was $60 million to $63 million. For the year to July, 2000, it recorded a net profit - after tax - of $70.5 million.

Waste Management shed 5c to 370, drinks company Frucor was a couple of cents lighter at 160, financial-services company Tower was 3c lower at 520, AMP shed 13c 2617 and Baycorp was unchanged at 1250.

For a third day in New York on Wednesday, blue-chips fell slightly and technologies managed a gain.

The tech-rich Nasdaq composite index rose 10.12 points - or 0.49 per cent - to 2074.74 but the Dow Jones average index of 30 industrials fell 37.6 points - or 0.36 per cent - to 10,434.84 and the broader, Standard and Poor's 500 composite index lost 5.69 points - or 0.47 per cent - to 1211.07.

- NZPA