NZ stocks: Market loses yesterday's gains

12.00pm

The New Zealand sharemarket today lost yesterday's modest gain as weak offshore markets continued to set the tone.

The NZSE-40 capital index was down 11.48 points to 1977.70 down 8.48 points at 1980.70 at 11.38am on reasonable volume of $38.9 million.

Volume was boosted by some portfolio buying in Telecom, National Australia Bank, Auckland Airport, Foodland, Fisher & Paykel Healthcare and Restaurant Brands. On-market activity was light.

US stocks slumped after sour investment calls on giants ranging from conglomerate General Electric to car maker Ford fed worries over the anemic pace of corporate profit growth.

The blue-chip Dow Jones industrial average sank 215.22 points, or 2.87 per cent, to 7,286.27, closing at a low last hit in October 1997. The Nasdaq Composite fell 15.06 points, or 1.33 per cent, to 1,114.15.

European blue-chips veered towards five-and-a-half-year closing lows in late trade on Wednesday as auto stocks like DaimlerChrysler were thumped by adverse broker comment and a looming crisis at Fiat.

There was little cheer on the home front with market leader Telecom losing 4c to 498 on good volume of $14.5 million.

Baycorp Advantage continued its southward trek, losing 10c to 298 -- a new low since its migration across the Tasman.

Restaurant Brands responded to the portfolio purchase with a 2c gain to 160.

Turners Auckland also gained 10c to 240 while others to rise included Lion Nathan, steady at 600, NZ Refining, up 9c to 1709 and UnitedNetworks, steady at 986.

Air New Zealand lost 1c to 51 after yesterday's 2c gain on further speculation that a deal with Qantas was near finality.

Most second line stocks lost ground including Carter Holt Harvey, 1c to 163, Fisher & Paykel Appliances, 4c to 976, Ports of Auckland 5c to 595 and Sky City, 16c to 730.

There were 12 rises against 44 falls among the 105 stocks traded.

- NZPA