NZ stocks: Profit takers knock market down

Profit takers knocked concerned about high oil prices the sharemarket down in early trading today for the third day this week.

The benchmark NZSX-50 gross index was off 8.39 points to 3751.32 at 10.10am, while the NZSX all capital index was down just 0.47 of a point to 1093.65.

London-based investment company GPG, which threatened to pull out of New Zealand due to new capital gains taxes on foreign investments announced yesterday, fell 9c to 253.

NZ Refining, rose 7c to 657, in response to higher oil prices and strong margins.

No 2 stock Contact Energy fell 5c to 795.

United States stocks also fell for a third straight day as investors worried that a sharp rebound in oil and other commodity prices would lead to higher inflation and hurt consumer and corporate spending.

The Nasdaq has lost about 2 per cent since Thursday, its most pronounced slide in almost two months.

Oil struck a seven-month high above US$69 ($114) a barrel as tensions escalated over Iran's nuclear work. Some analysts said crude prices could climb as high as US$100 a barrel.

The Dow average fell 51.70 points, or 0.5 per cent, to end at 11,089.63.

The Standard & Poor's 500 Index slipped 10.03 points to 1286.57 and the Nasdaq dropped 22.92 points, or 1 per cent, to close at 2310.35.

- NZPA