NZ stocks: Market eases in late morning trade

12.00pm

The New Zealand sharemarket followed Wall St into negative territory, easing slightly today.

Sam Macdonald of Direct Broking said the market was going through a sell-off, after a buoyant session yesterday in which it bucked the overseas trend.

By late morning the benchmark NZSX-50 gross index was down 5.78 points, or 0.25 per cent, at 2327.82, while the top-40 capital index shed 0.34 per cent to 2223.65, with 7.3 million shares worth $20.1 million changing hands.

Of the 107 stocks that traded before midday, 37 fell and 21 rose.

Fletcher Building retreated 1c to 417 after a 6c gain yesterday when it announced first-quarter sales were stronger than expected and it no longer forecast a slowdown in construction activity or demand this year.

Fisher & Paykel Healthcare, having risen 20c yesterday when hinting at a brighter future after an interim profit downtown, eased 8c to 1227.

Its sister stock F&P Appliances, which announced a slightly higher first half profit of $54 million today, lost 1c to 1498.

Independent Newspapers, which said yesterday it would distribute surplus capital to shareholders, also slipped 3c to 487, while Carter Holt Harvey lost 1c to 184, and Sky TV lost 2c to 521.

Market leader Telecom was down 2c to 495.

Other leading stocks to ease included Air New Zealand, down 2c to 48, Genesis 6c to 110, ANZ lost 15c to 1910, Auckland Airport down 6c to 689, and The Warehouse 3c to 582.

Tourism Holdings Ltd, which warned at its annual meeting yesterday that first half profits were expected to fall, dropped 7c to 152.

Casino operator Sky City continued to gain ground, up 7c to 929 after the company commented yesterday it would be interested in bidding for Perth's Burswood Casino if the price and circumstances were right.

Sky City already owns a casino in Adelaide in addition to its New Zealand casinos in Auckland, Hamilton and Queenstown. It also has a 33 per cent interest in Australian internet sports wagering company Canbet.

Meat company Affco lost 1c to 24 despite announcing yesterday it had turned around an annual loss to post total after-tax earnings of $16.6 million.

"Affco is a is a classic case of buy the rumour, sell the fact," Mr Macdonald said.

Firming were Westpac, up 16c to 1705, Skellmax, up 1c to 123, Postie Plus, up 1c to 118, 42 Below rose 1c to 36, Freightway was up 1c at 189, and Guinness Peat Group, up 1c to 182.

In New York, the Dow Jones industrial average closed 19 points, or 0.2 per cent, lower at 9737, racking up its first three-session streak of losses since October. The broader Standard & Poor's 500 Index fell 0.5 of a point, or 0.1 per cent, to 1046, and the technology-laced Nasdaq Composite Index was down 11 points, or 0.6 per cent, at 1931.

Trading was moderate as many on Wall Street took the Veterans Day holiday off.

- NZPA