NZ stocks: Market edges lower on very light volume

12.00 pm

The sharemarket edged lower on very slim volume today with some comfort taken from Wall Street's muted response to the hostilities in Afghanistan.

US blue-chip stocks slipped overnight, weighed down by lingering uncertainty about the scope and duration of US-led military action on the second day of retaliatory strikes in Afghanistan.

The Nasdaq Composite Index, which seesawed above and below the unchanged mark throughout the day, finished with a gain of just 0.65 of a point, or 0.04 per cent, to end at 1,605.95.

The Dow Jones industrial average sagged 51.83 points, or 0.57 per cent, to 9,067.94.

"People are settling in to see where it goes. I think President (George W) Bush has put the correct spin on it -- it's something that will carry on for some time, it's not a Gulf War situation," said ASB Securities broker Andrew Kelleher.

The market was very quiet with just $10.8 million shares traded by late morning.

The NZSE-40 index was down 14.65 points at 1874.42 largely due to Telecom's 6c fall to 439.

Air NZ A's were down 3c to 30 and the Bs were down 1c to 29c.

Mr Kelleher said ASB feels that Air NZ would to remain under pressure now that the positive news of the Government bailout was out.

"Once the euphoria has dissipated of the airline keeping going, people will realise that they have some pretty tough environmental issues to deal with."

Auckland Airport fell 7c to 335.

Fisher & Paykel was up 10c to 1345 despite news at yesterday's annual meeting that the listing on Nasdaq of the healthcare division could be delayed. Brokers said people were not concerned as they know it will proceed.

DB Group, a good performer during the US terror attack crisis was up 8c to 510.

Amp fell 40c to 2225, Baycorp fell 40c to 1150, Carter Holt was up 1c to 148, Contact Energy was up 1c to 342, Nuplex was down 5c to 290, Sanford was down 14c to 616, Sky City was down 10c to 1105, Sky TV was down 4c to 311, Tranz Rail was up 2c to 435, and The Warehouse was down 6c to 598.

There were 19 rises and 35 falls among the 101 stocks traded.

- NZPA