12.00pm
New Zealand markets fell into line with declining offshore markets this morning as profit-takers swooped on recent war rallies.
At 11am the benchmark NZ50 gross index was down 17.59 points, almost one per cent, to 1900.67 on turnover worth $36 million. The NZSE-40 capital index fell 16.29 points, or 0.86 per
cent to 1871.99.
Brokers said the New Zealand market was largely taking its cue from overseas, albeit on light volume.
On Wall St, stocks sank more than three per cent on the Dow as investor sentiment was rattled by footage of US prisoners in Iraq. After the Dow had its best week for 20 years last week, brokers said the market was losing optimism that the war would be an easily winnable affair.
The British market was also shaken, with the FTSE-100 down some three per cent or 117.8 points to 3743.3, taking the shine off its recent 17 per cent rally.
However, the drop in New Zealand markets was largely sentimental, said ASB Securities broker Stephen Wright. He said the New Zealand market was "not likely to be as badly affected" because of their traditionally high dividend payouts.
Two-thirds of the turnover was accounted for by the sale of 15.5 million shares at $1.40 in energy company NGC Holdings. NGC was down 4c at 144 after Hutt Mana Energy Trust reduced its stake from 9.8 to 8.2 per cent.
On light trading, Telecom has fallen 5c to 428, Telstra -- which went ex-dividend yesterday -- has dropped 6c to 430, Guinness Peat Group has eased a cent to 151, Fletcher Building has lost 2c to 350, Auckland Airport is off 3c to 515, and Sky City casino is down 6c to 796.
Recent retail darling Briscoe Group continued to fall, by 4c to 187, after disappointing the market with a slightly lower first half result last week. The Warehouse was also down 5c to 570.
So far there have been 15 rises and 46 falls on 95 stocks traded.
Offshore, the Dow Jones industrial average sank 306.59 points, or 3.60 per cent, to 8215.38 . The broad Standard and Poor's 500 index slid 31.56 points, or 3.52 per cent, to 864.23. The tech-laced Nasdaq Composite Index tumbled 52.06 points, or 3.66 per cent, to 1369.78.
- NZPA
