NZ stocks: Slow early trade on sharemarket

12.30pm

The sharemarket was continuing this week's sluggish run today, rising slightly in slow early trade.

At 11.30am, the key NZSX50 gross index was at 2168.15, just 0.19 points or 0.01 per cent higher than this morning's open. Similarly, the NZSX40 capital index was 0.14 points or 0.01 per cent higher at 2109.03. Turnover was $28.3 million on 9 million shares traded.

"It's a pretty flat and lacklustre start to the day," First NZ Capital research manager Barry Lindsay said this morning.

The market found little direction from overseas markets.

On Wall St, stocks eked out some gains yesterday as better-than-expected consumer confidence data raised hopes for an economic recovery, but the mood was subdued as markets kept their interest-rate vigil with the Federal Reserve chiefs in session.

In London, Britain's blue chip shares closed lower, led down by the financial sector as investors bet markets could head lower again in the absence of strong economic data and upbeat company news.

In Tokyo, Japan's Nikkei average ended down over two per cent on Tuesday, snapping a five-day winning streak .

In New Zealand, Mr Lindsay said a couple of issues stood out on the market this morning.

BayCorp Advantage was one of these. The data management company was down 4c to 158 at 11.30am.

"The only thing we can attribute that to is perhaps a reaction to one of its competitors' profit warning announced in Australia yesterday," Mr Lindsay said.

"I think BayCorp is just a little bit weaker because it's reflective of the difficult conditions in that market."

However, Mr Lindsay said the market did have one or two bright spots.

Capital Properties, which is having a rights issue, was a bit firmer today after seeing some weakness yesterday. This morning it was up 1c to 87.

Meanwhile, market lynchpin Telecom was even at 517 on turnover of 1.8 million shares worth $9.6 million.

"The only news there was the finalising of their outsourcing agreement whereby AAPT is outsourcing some of its service requirements to French company Alcatel."

Mr Lindsay said Telecom's performance this morning was set against a 1.5 per cent gain in the "telecommunications index", a measure of US telcos' stock performance which tends to affect the performance of telco shares on the New Zealand market.

Elsewhere, Tranz Rail was down a cent to 90. The rail operator said today its latest profit forecast downgrade was due to a $20.8 million revenue shortfall, including rising interest costs from its large debt burden.

Stocks to move in early trade by 11.30am included: Auckland International Airport up 3c to 595, Contact Energy up 2c to 490, Fisher & Paykel Appliances up 5c at 1290, Fisher & Paykel Healthcare up 8c to 1160, Fletcher Building down a cent to 372, Genesis Energy down 5c to 120, Lion Nathan up 10c to 640, Michael Hill up 3c to 450, NGC Holdings down 4c to 159, Owens Group down 3c to 95, Ports of Auckland down 4c to 786, Promina down a cent to 266, Restaurant Brands up a cent to 139, Richina up a cent to 37, Sanford up 2c to 502, Sky City down 3c to 932, Steel & Tube down 5c to 365, Tourism Holdings up a cent to 113, Tower Group down 2c to 146, the Warehouse down 2c to 513 and Westfield down 3c to 412.

There were 29 rises and 32 falls on 110 stocks traded.

- NZPA