NZ stocks: Shares little affected by US market's tumble

12.45pm

The New Zealand sharemarket's benchmark index traded slightly lower this morning but remained relatively firm after United States stocks tumbled last night.

By midday the NZSX-50 gross index was 3.26 points lower at 2782.99, while the NZSX all capital index was 1.28 points lower at 936.19. Total turnover by late morning was worth $26.89 million and there were 30 rises and 36 falls among the 119 stocks traded.


In New York last night, US stocks tumbled after oil prices surged to a new record above US$44 ($68.86) per barrel and a report showed consumer spending in June took its biggest plunge in almost three years.

Direct Broking's Peter Lynds said the local market was faring quite well considering the performance of the US market.

"Our market seems to run on its own feet at the moment," he said.

"It's holding here. You've got the reporting season coming through and you've got Telecom's result tomorrow. So whilst it's a bit of a wait and see market, it seems pretty comfortable to be at this level."

The New Zealand market's biggest company, Telecom, which reports its annual result tomorrow, appeared to be little affected by Wall St's dip and was down a cent at 614.

Telecom shares have gained steadily in recent sessions as investors have become hopeful the company will tomorrow flag increased returns to shareholders.

This morning it was announced that Australia's Hutchison 3G -- 19.9 per cent owned by Telecom -- had sold a half stake in its 3G network to Telstra for A$450 million ($497.29 million).

Telstra shares were 5c lower at 540 by midday.

Elsewhere, there were few moves of note among top stocks.

Bids for a half share in gas and electricity lines company PowerCo close on Friday. Today, the company's shares were a cent lower at 211.

Financial services company Tower Ltd today said it had repaid all of its senior debt two years early. Its shares were a cent higher at 193 by late morning from 108 just over a year ago.

Opio Forestry Fund was 40c higher at 98 this morning after Dunedin City Council's City Forests yesterday launched a $12.7 million takeover bid to acquire 1360ha of trees in three blocks in South Otago and Southland from Opio.

City Forests is offering 85c for each of Opio Forestry Fund's 14.96 million fully paid units on issue, conditional on obtaining 75 per cent acceptance.

Other stocks to move in morning trade included: APN News & Media down 15c to 470, Contact Energy up a cent to 603, Fisher & Paykel Healthcare up 5c to 1365, Fletcher Building down 3c to 485, Infratil down 3c to 310 and Metlifecare down 10c to 230.

- NZPA