NZ stocks: Market down as jittery investors stay at home

The New Zealand sharemarket was going nowhere fast today, as US president George W Bush took another step towards war with Iraq.

The Dow fell 1.31 per cent ahead of a news conference in which Bush vowed to force UN Security Council members to vote on a resolution that would set the stage for war against Iraq, even if the measure faced certain defeat.

The resulting uncertainty has seen volumes dry up this week and today was no different, with turnover of a light $40.8 million.

"It's certainly a very quiet market," noted Rob Josephson from JB Were.

The NZ50 gross index closed down 7.46 points to 1902.49 and the NZSE-40 capital index fell 6.3 points to 1890.35.

The most active stock was Cadmus Technology, which lost a quarter of its value to 6c on 19.2 million shares, 12 per cent of its issued capital.

The stake was owned by Coromandel Gold, a subsidiary of Heritage Gold which owned it via Cadmus' backdoor listing three years ago.

Private clients of JB Were and ABN Amro Craigs picked up the stock at what some brokers said were bargain prices.

Market heavyweight Telecom fell a cent to 431 on a $5.2 million worth of shares, but it managed to hold onto a three-day gain after falling to a mult-year low of 413 on Monday.

Brokers said it was a pleasing performance given the negative markets in Asia, US and Australia.

Investment company Guinness Peat Group closed up 5c to 146 after announcing that its half-owned British joint venture Avenue Acquisition had made a cash offer for thread company Coats Plc.

The board of Coats, the world's largest supplier of industrial thread, has recommended shareholders accept the offer.

Battered Baycorp Advantage gained 9c to 115 after being heavily sold down following a first half loss announcement last week.

Meat company Richmond soared 10c to 300 as its South Island rival PPCS extended its $3.05 per share takeover offer by another week.

Several stocks were up of a dividend payout on Monday. Steel & Tube rose 10c to 325 after announcing a $25 million deal to acquire distribution company Hurricane Wire Products and ahead of an 11c dividend.

Port of Tauranga was up 5c to 400 ahead of a 6c payout; Cavalier was up 6c to 395 ahead of a 7.5c payout; and Colonial Motor Co, which pays a 2.3c dividend, was untraded today. The stock, which last traded at 327, posted a fairly flat December half year operating profit of $3.47 million after tax.

Retailer The Warehouse eased 2c to 549 ahead of its first half results next week.

Falls narrowly outnumbered rises 52 to 37 on 120 stocks traded.

In addition to war jitters, Wall St investors were also affected by profit warnings from defence contractor Raytheon Co, drugmaker Schering-Plough Corp and poultry and beef processor Tyson Foods.

The broad Standard & Poor's 500 Index fell 7.75 points, or 0.93 per cent, to 822.10. The tech-laced Nasdaq Composite Index dropped 11.48 points, or 0.87 per cent, to 1302.92.

- NZPA