Fletcher down, sharemarket dips

File photo / Paul Estcourt

Fletcher Building lost steam in early trading, falling slightly after reaching levels not seen since May 2008 yesterday.

The largest building company's shares have been in demand since Canterbury's massive earthquake, as local and offshore investors anticipate its involvement in the estimated $4 billion reconstruction.

Fletcher Building shares rose 1.9 per cent, or 16c to $8.66 yesterday, but this morning was trading at $8.59, down 7c.

The benchmark NZX-50 index opened down 2.662 points, or 0.082 per cent, at 3234.094 as overseas markets eased after the US Federal Reserve this morning said it was prepared to provide additional accommodation if needed to support the economic recovery.

Overseas investors had hoped that with recent improvements in economic data, the Federal Reserve would issue a more upbeat outlook, or clarify the measures it would take to stimulate demand.

Restaurant Brands, another stock to post large gains yesterday after it reported a 3.7 per cent rise in quarterly sales, was also down. Shares fell 3c to $2.56.

It made a comeback about 10.15am when shares went up 1c to $2.60.

Telecom fell 2c to $2.04, Mainfreight fell 1c to $7.20, Trustpower fell 2c to $7.38, and Michael Hill fell 1c to 70.

ING Medical Properties was down 2c to $1.23, Fisher & Paykel Healthcare was down 4c to $3.07, and Sky City was down 1c to $2.89.

Among the gainers, Contact Energy rose 1c to $5.76, Air New Zealand rose 1c to $1.30, and Nuplex rose 2c to $3.48.

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In the United States, the Dow Jones industrial average was up 7.41 points, or 0.07 per cent, at 10,761.03. The Standard & Poor's 500 Index was down 2.93, or 0.26 per cent, at 1139.78. The Nasdaq Composite Index was down 6.48 points, or 0.28 per cent, at 2349.35.

- NZPA