NZ stocks: Shares tread water as Sars threat looms

12pm

New Zealand shares were treading water this morning as the outbreak of a deadly respiratory disease in Asia continued to hurt top tourism stocks like Auckland Airport and Sky City.

The NZ50 index was up 1.86 points at 1933.47 by 11.30am, while the NZSE-40 was 1.58 points higher at 1898.32. Turnover was slim, with six million shares worth $15.6 million changing hands during the morning session.

News Auckland Airport has appointed a new chief executive with ample airport experience stemmed some of the bleeding, with the stock last trading down a cent at 490 after earlier plunging 8c in response to yesterday's 14c dive.

Don Huse has been chief financial officer at Sydney Airport since 1998 and before that was chief executive of Wellington Airport. The 56-year-old takes the reins from John Goulter in July.

"In the current global situation, challenges lie ahead for us. Don has an excellent mix of relevant experience, leadership and cultural affinity that will be critical for us," Auckland Airport chairman Wayne Boyd said.

The stock has suffered this week as the outbreak of severe acute respiratory syndrome (Sars) worsened. The disease - centered around the key Asian markets of Hong Kong and China -- has killed about 80 people worldwide and inflicted more than 2000 so far, raising fears about tourism numbers here.

But a source close to the airport told Reuters this morning that there was "little that could be identified as being of concern within the company at this point in time".

Sky City, which also relies on a big Asian customer base, was steady at 780.

In the broader market, rises outpaced falls by 33 to 17 among the 96 stocks traded so far.

Briscoe Group lost 2c to 181, Carter Holt Harvey was a cent lower at 171, Fletcher Building lost 2c to 340, Fisher & Paykel Healthcare added 10c to 965, Baycorp Advantage was up 2c at 140, Fisher & Paykel Appliances added 15c to 980, Powerco rose 2c to 145, Telecom added a cent to 457 and The Warehouse was a cent lower at 545.

In the United States stocks ended slightly lower on Thursday, weighed by losses in large telecommunications companies and weak economic data that renewed fears about the fragile economy.

Stocks wavered between positive and negative territory for most of the session, as investors weighed the disappointing data but also took heart from progress from the war in Iraq.

Hurting the blue-chip Dow was AT&T Corp and other telecom carriers, which fell after some Wall Street analysts scaled back their growth forecasts through 2004 and raised concerns about pension liabilities and competitive pressures.

The Dow Jones industrial average finished down 44.68 points, or 0.54 per cent, at 8240.38. The broader Standard & Poor's 500 Index slipped 4.45 points, or 0.51 per cent to 876.45. The technology-laced Nasdaq Composite Index ended down just 0.01 per cent, or 0.14 point, at 1396.58.

- NZPA