NZ stocks: Shares ease marginally in quiet trade

The New Zealand sharemarket eased in morning trade today but proved far less susceptible to the negative sentiment that has been a drag on overseas markets since last week's terror attacks in Spain.

By 11.30am the benchmark NZSX-50 gross index was 2.9 points or 0.12 per cent lower at 2501.31, while the NZSX-40 capital index was 2.79 points or 0.12 per cent lower at 2281.46. Turnover was very thin, worth $17.01 million, with 21 stocks rising and 37 falling among the 111 traded.

Amro Craigs Equities retail adviser Bryon Burke said except for few exceptions, the market was showing the same softer tone evident yesterday.

But while trading was quiet, the local market was less negative than those overseas. Yesterday Wall St's Dow Jones industrial average ended down 137.19 points, or 1.34 per cent, at 10,102.89, its lowest close since mid-December.

In the days following the bomb attacks on the Spanish capital Madrid, the Dow had lost about 5 per cent, while the NZSX-50 had effectively traded flat.

Meanwhile this morning, "we've seen a bit of a mixed bag in the leading stocks", Mr Burke said.

Market leader Telecom was down 5c to 582, "really reflecting the US close today".

On the upside, wood processor Carter Holt Harvey was up 5c to 198 as the sale of the company's tissue business was perceived to be drawing near.

Contact Energy was also up, rising 2c to 514 after losing 4c cents yesterday. "Just a bit of bottom fishing there", Mr Burke said.

Among the few other tops stocks to move higher, Fisher & Paykel Appliances was up 7c to 460, and F&P Healthcare was up 3c to 1165, Fishing company Sanford was up 20c to 500, and TrustPower was up 10c to 710.

On the downside, Infratil fell a further 2c to 258c, after taking a 10c tumble yesterday.

The infrastructure investment company announced a material profit downgrade at its 77 per cent-owned Glasgow airport yesterday.

"The way we read it is that probably about 10c of value was eroded there," Mr Burke said, adding that today's loss was probably overdone.

Other stocks to fall included Sky City continuing its recent slide, falling 10c to 427, Steel & Tube Holdings down 2c to 373, TelstraClear down 2c to 540, and The Warehouse was down 3c to 445.

International markets are still feeling the aftershocks of the terrorist bombing in Madrid last Thursday, as speculation grows that al Qaeda was responsible for the attacks.

Apart from the Dow's 1.34 per cent fall, the Standard & Poor's 500 Index closed down 16.14 points, or 1.44 per cent, at 1,104.43 and the Nasdaq Composite Index fell 45.53 points, or 2.29 per cent, to 1,939.20.

Britain's FTSE 100 benchmark index ended down 54.5 points at 4,412.9 -- its lowest closing level in a month.

The Japanese benchmark Nikkei average closed up 1.39 per cent at 11,317.90.

- NZPA