NZ stocks: Market in holding pattern

12.00pm

Telecom dominated trading on a moderately busy sharemarket this morning that remained in a holding pattern.

Turnover at 11.30am was worth $26.6 million, $14.6 million of which was generated by Telecom, which fell 1c to 505.

Despite the activity, the benchmark NZSE-40 was fairly dormant, down 3.32 points to 2009.42.

Wall Street dived 1.6 per cent in mid session but by its close, investors had shrugged off a dour US consumer confidence survey.

The survey showed confidence was at a nine-year low this month, reflecting fears about jobs and a possible US attack on Iraq, and boosting chances the Federal Reserve will cut interest rates next week.

Wall St is also waiting for key reports later this week on advance gross domestic product for the third quarter and October unemployment statistics to shed more light on the pace of the economic rebound.

The blue-chip Dow Jones industrial average closed up 0.9 points at 8,368.9 and the Nasdaq Composite Index dropped 15 points to 1,300.5.

In New Zealand Air New Zealand fell 1c to 53c following its 6 per cent gain yesterday after the company said it had made a $17 million first quarter profit. It also doubled its previous forecast of annual profit before unusuals to $200 million.

ASB Seucurities broker Andrew Kelleher said while investors were increasingly confident of the new management team, concern was mounting that talks with Qantas about its proposed buy-in were dragging on too long.

Fisher & Paykel Appliances continued its good run, rising 5c to 1090.

Sky City fell 4c to 766, while Tranz Rail lifted 3c off the floor to 148.

INL was up 3c to 303 after it chairman Ken Cowley told shareholders at the annual meeting today that two thirds owned Sky TV was on track towards positive cashflow in fiscal 2004.

He said Sky was set to reduce bottom line losses in fiscal 2003 and be profitable in 2004.

INL said its core publishing company was performing strongly.

There were 21 rises and 30 falls on 100 stocks traded.

- NZPA