NZ stocks: Shares follow US market lower

12.30pm

The New Zealand sharemarket moved lower in morning trade as Telecom and some other blue chip stocks eased in the wake of a tumble by US equities overnight.

Shortly before noon, the NZSX-50 gross index was 10.33 points lower at 2847.33, while the NZSX all capital index was 3.94 points lower at 946.02.

Telecom, which carries a 28 per cent weighting in the top 50 index was down 4c at 593 after a fall by US stocks overnight. The telco, mostly owned by offshore investors, is often affected by downturns in international equity markets.

Amro Craigs Equities retail equities adviser Nigel Scott said with overseas markets "starting to give way", the local market was showing "a little hesitancy" as rising oil prices and the stronger New Zealand dollar began to affect investors' medium-term outlooks.

A recent period of corporate activity and acquisitions had resulted in reinvestment and a consequent rise for stocks, "but I think the marketplace is now just saying be a bit more patient."

Meanwhile among other top stocks Auckland International Airport was down 6c to 734, Fisher and Paykel Appliances was down 2c at 417 and Carter Holt Harvey was down 2c to 232.

Other stocks to move in early trade included: Cavalier Corp up 5c to 485, Hellaby Holdings down 10c to 600, NZX down 15c to 750, Ports of Auckland up 5c to 680, Pyne Gould Corp down 20c to 305, Toll NZ down 5c to 270 and the Warehouse down 2c to 407.

Total turnover by late morning was worth $42.06 million and there were 20 rises and 44 falls among 125 stocks traded.

Meanwhile on Wall St overnight, stocks fell after oil spiked to a record high and New York Attorney General Eliot Spitzer levelled fraud charges at the insurance industry, dragging Dow component American International Group Inc down 10 per cent.

The Dow ended down 107.88 points or 1.08 per cent at 9894.45, its lowest since August 13. The Standard & Poor's 500 Index was down 10.36 points at 1103.29. The technology-laced Nasdaq Composite Index was down 17.51 points at 1903.02.

- NZPA