NZ stocks:Holidays in NZ and US slow activity

12.00pm

New Zealand's sharemarket traded quietly this morning as a softer Wall St, a regional holiday in Wellington and another holiday in the United States kept many investors away.

Just after 11am, the NZSE-40 Capital Index was down 11.07 points, or more than half a percentage point, to 1998.15 on $12.2 million turnover.

"Monday mornings are always traditionally quiet until midday," James Snell of First NZ Capital said.

"The market's just a little weaker here following the downgrades in the (US) tech sector and on the back of IBM and Microsoft having decent losses in the weekend."

After a sharp jump on Friday, Tranz Rail rose a cent to 122. At the end of last week, Tranz Rail was up 11 per cent or 12c higher on speculation that the Government was in talks to buy back part, or all, of the railway company's tracks.

Market leader Telecom climbed back down to its price at the end of last year, down 8c to 453 on turnover on $4.1 million worth of shares.

On Friday Telecom a deal announced with BCL to provide wholesale high-speed internet services to rural and regional customers later this year.

"It had a pretty good run at the start of the year," Mr Snell said, adding that many overseas telecom companies had as well. "After having initial money coming into the market, it looks like that has washed its way through."

Meat company Richmond eased another 3c to 272 as bearish sentiment lingered about the likelihood of PPCS' takeover bid being successful.

Other movers included Sky TV down 9c to 360 on light turnover; Auckland Airport, down 5c to 535; Port of Auckland down 10c to 685; Scott Tech up 9c to 264; Sky City up 2c to 840; and Baycorp Advantage steady at 230 on reasonably heavy trade.

So far there have been 17 rises and 34 falls on 99 stocks traded.

US equity markets are on holiday tonight but over the weekend, investors pushed the Nasdaq to its biggest percentage loss in a month after a quarterly loss by IBM and cautious outlook from Microsoft.

A sluggish forecast from General Electric Co also weighed on stocks, and the three major indices ended the week lower for the first time in the New Year.

The Nasdaq Composite Index closed down 47.56 points, or 3.34 per cent, at 1376.19, its biggest single-day fall by percentage since December 9.

The Dow Jones industrial average declined 111.13 points, or 1.28 per cent, at 8586.74 and the broader Standard & Poor's 500 Index fell 12.82 points, or 1.4 per cent, at 901.78.

- NZPA