NZ stocks: Market down slightly, F&P healthcare pleases

12.00pm

The New Zealand sharemarket was down slightly today after the United States Federal Reserve decided to slash interest rates by a surprising 50 points.

By mid-morning, the NZSE-40 capital index was down 0.49 per cent, or 9.74 points, at 1974.23, on turnover of 7.62 million stocks, valued at $26.17 million.

Leading turnover was Telecom's 1.76 million stocks worth $8.57 million.

In a morning of corporate news, Fisher & Paykel Healthcare was up 10c at 1090 after reporting a jump in half year profit by nearly a third to $33.807 million.

Shares in Fisher and Paykel Healthcare have been steadily rising on anticipation of a good result, from 985 on October 7. Its sister stock, Appliances, was up 6c also at 1090.

The Warehouse opened unchanged at 740 but dropped 8c despite announcing its New Zealand stores posted a 7.6 per cent increase in sales in the October quarter on a same stores basis.

Overall sales were up 11.8 per cent.

Elsewhere on the New Zealand market, Telecom was down 3c at 487, Briscoe Group lost 4c to 260, Contact Energy lost 5c to 376, Horizon Energy Distribution lost 10c to 350 after announcing a 9 per cent fall in interim profit yesterday, Carter Holt Harvey shed 3c to 169, and Tranz Rail was down 9c at 137.

Casino operator Sky City was up 2c at 762, fund manager Tower was down 2c at 188, AMP gained 30c to 1380, and investment company Southern Capital gained 3c to 63.

There were 39 rises and 25 falls on the 105 stocks traded.

In a surprise move the US Fed, worried about the sputtering economy, cut a key interest rate by 50 basis points to 1.25 per cent this morning (NZT), marking its first rate reduction this year. The market had expected a 25 point fall.

On Wall St, stocks reacted favourably to the cut and the Republican election victory which stirred hopes for a business-friendly administration.

The Nasdaq Composite index climbed 17.82 points, or 1.27 per cent, to 1418.99, scoring its sixth straight session of gains; the blue-chip Dow Jones industrial average rallied 92.74 points, or 1.07 per cent, to 8771.01; and the broad Standard & Poor's 500 advanced 8.37 points, or 0.91 per cent, to 923.76.

- NZPA