KEY POINTS:
The New Zealand sharemarket fell in early trade today in the wake of more gloomy economic news out of the United States.
Around 10.10am the benchmark NZSX-50 index was down 17.77 points to 3593.94, following a 35.5 point fall yesterday as the market awaits today's budget announcement.
Shares in aged care provider Ryman Healthcare were up 6c to 180 in early trading today after the company reported a 22 per cent rise in annual net profit to $72.6 million.
The company said its substantial operating cash flows had allowed it to develop new villages at an increasing rate, without seeking fresh capital, while increasing dividends.
The market was less impressed with Rakon's 4 per cent rise in annual net profit to $10.9 million.
A high New Zealand dollar and higher depreciation and amortisation charges had offset growth in ebitda (earnings before interest, tax, depreciation and amortisation), Rakon said.
Rakon's shares were down 3c early to 327, while top stock Telecom also dropped 3c early, taking it to 389.
Fletcher Building was down 15c to 780, following falls of 30c yesterday and 25c on Tuesday, taking it to a new two-year low on concerns about its US operations.
Stocks falling 3c early included Auckland Airport to 222, Cavalier to 257, Contact Energy to 886, and Guinness Peat Group to 178.
Down 5c early were Nuplex, to 620, and Trustpower to 830, while SkyCity dropped 12c to 360 and Air New Zealand slipped 4c to 110.
Among few stocks to advance was The Warehouse, up 2c early to 536.
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In the US, stocks posted their biggest losses in two weeks, amid fears the US economy faces 1980s-style stagflation after the Federal Reserve slashed its economic growth forecasts while raising estimates for inflation.
Further fuelling market concerns, oil prices surged further into uncharted territory, soaring over US$4 ($5.21) a barrel, or 3.25 per cent, to a record high close at US$133.17, after a US government report showed a surprise drop in crude stockpiles.
The Dow Jones industrial average fell 1.77 per cent to close at 12,601.19, while the Standard & Poor's 500 Index dropped 1.6 per cent to 1390.74. The Nasdaq Composite Index lost 1.77 per cent to 2448.27.
- NZPA
