NZ stocks: Shares lower as Telecom falls

The New Zealand sharemarket was weaker today as Asian markets wobbled after North Korea said it had conducted a nuclear test.

The benchmark NZSX-50 index closed down 20.349 points, or 0.737 per cent, at 2740.195. Turnover was worth $83 million. There were 43 rises and 36 falls among the 109 shares traded.

Telecom fell 14c to 246 but 6c of this fall was due to the stock going ex-dividend today, which is not included in the index.

Financial markets are also keeping an eye on comments by Standard and Poor's ahead of the Government's budget on Thursday as sentiment was knocked by a revision of the outlook for the UK's credit rating by the agency on May 21.

But private sector debt was the issue for investors today after trading in Fisher and Paykel Appliances was halted ahead of an announcement on Wednesday. The company is in talks with bankers and is expected to seek capital from shareholders.

Investors are waiting to hear if the company has found a cornerstone investor and at what price it will raise new capital.

The company's shares last traded at 66c.

"Investors have been waiting a long time for this announcement so it will be welcome relief when it finally arrives," said Grant Williamson, director at Hamilton Hindin Greene.

He said otherwise the market was weaker in quiet trade.

Fletcher Building fell 1c to 627 and Contact eased 1c to 584.

Auckland Airport fell 2c to 160 after announcing passenger numbers.

Michael Hill rose 2c to 67 and Nuplex rose 2c to 48. Pike River Coal rose 2c to 109.

Fisher and Paykel Healthcare eased 3c to 307 ahead of its profit announcement tomorrow.

Port of Tauranga rose 3c to 603. Mainfreight rose 5c to 495 and Methven rose 6c to 130.

In the United States, Wall Street reversed course late Friday (local time), finishing lower as early gains built on better earnings reports from retailers faded away.

Trading was choppy, and the market's swings were exaggerated by light volume ahead of the Memorial Day weekend.

The Dow Jones industrial average fell 0.2 per cent to 8277.32, the S&P 500 index slipped 0.2 per cent to 887.00 and the Nasdaq composite index lost 0.2 per cent to 1692.01.

Despite the market's seesaw movements last week, all the major indicators finished the five-day period in the black. The Dow rose 0.1 per cent; the S&P 500 index rose 0.5 per cent; and the Nasdaq rose 0.7 per cent.

- NZPA