NZ stocks: Market soft as Feltex continues to ease

The New Zealand sharemarket was treading water this morning, as troubled carpet maker Feltex continued to ease and record oil prices weighed on Wall St overnight.

"It is the usual mixed bag, with some stocks up and some down and not a lot of news going on," Direct Broking's Ken Allen told NZPA.

"It has reopened on the back of a ten point fall in the Dow Jones and a rise in oil prices overnight again, so there is a bit of selling coming through on the back of that."

By mid morning, the market's benchmark NZSX-50 gross index was 0.15 of a point lower at 3167.91 while the NZSX all capital index was down 0.95 of a point at 995.45.

Feltex slipped a further 2c to 45, adding to yesterday's 23c tumble on news of another profit downgrade, the departure of its chief executive Sam Magill and likely restructuring.

The company yesterday said it had been surprised by a fall-off in Australian carpet sales, and an increasingly tough competitive environment.

Market leader Telecom added to the softer tone, falling 1c to 609. Mr Allen said the company didn't appear to be copping too much flak from yesterday's telephone and internet breakdown, which forced the market to close between 11am and 4pm.

"Most people are taking the view that it was circumstances out of their control.

"There was some selling in Telecom yesterday afternoon after the market reopened on the back of that, but it is only slightly down today."

Among other top stocks Carter Holt Harvey gained a cent to 200, as did Fletcher Building at 671 and Contact Energy at 746. On the flipside, Sky Network TV lost 10c to 685 and TrustPower lost 15c to 580.

Most other moves across the top 50 were fairly muted.

Total morning turnover was worth $28.78 million and there were 22 rises and 35 falls among 114 stocks traded.

- NZPA