NZ stocks: Market idles along on war uncertainty

12.00pm

Trading on the sharemarket was slow to fire this morning as a lack of liquidity this week continued to bite.

On scant turnover worth $7.8 million, the NZ50 gross index dropped 8.79 points to 1901.17 just after 11am.

The NZSE-40 capital index fell 7.36 points to 1889.32.

Order flows have driven the market all week, as uncertainty over the prospect of a war on Iraq plagues equities worldwide.

The Dow Jones industrial average shed 101.61 points, or 1.31 per cent, to 7673.99, as Americans prepared for a speech from President George W Bush today.

Back home, Telecom led the way, down 5c to 427 on $1.8 million. Australian counterpart Telstra shed 8c to 445.

Investment company Guinness Peat Group was up 7c to 148. The British-based company has just announced a cash offer for thread company Coats Plc through Avenue Acquisition Plc, a joint venture in which GPG holds a 50 per cent stake. Coats' board is recommending shareholders accept the 58.5 pence per share offer.

Steel & Tube was up 5c to 320 after announcing a $25 million deal to acquire distribution company Hurricane Wire Products.

Baycorp Advantage edged up 3c to 109, 5c off its year low, after being heavily sold down following a first half loss.

The stock has lost 75c since announcing a net December half loss of A$11.9 million ($12.9 million) last Thursday -- far from the $7.70 it was trading at soon after its merger with Australia's Data Advantage in 2001.

In other moves, Sky City was up a cent to 876, carpet maker Cavalier was up 6c to 395, Restaurant Brands was down 3c to 133, and Hellaby was up 7c to 345.

Falls narrowly outnumbered rises 24 to 36 on 94 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