12.00pm
The sharemarket remained in a holding pattern today with depressed overseas markets holding it back.
The NZSE-40 Capital Index was down 5.90 points at 2039.94 on volume of just $16 million late this morning.
ASB Securities broker Ian Witters said the local market appeared solid enough but it was restrained by the
international situation in terms of both weak earnings from equities and potential conflict in Iraq.
US stocks sagged to six week lows as a stream of profit warnings from companies including fast food giant McDonald's and a surprise drop in industrial output doused an early rally sparked by Iraq's agreement to admit weapons inspectors.
Iraq's decision gave an initial fillip to the market but it fizzled as the Bush administration expressed scepticism.
Grim US economic data and corporate profit warnings also swivelled back into the spotlight. The Dow Jones industrial average fell 172.63 points, or 2.06 per cent, to 8207.55 and the technology-laced Nasdaq Composite Index fell 15.94 points to 1259.94.
The main local news was Fletcher Buildings' A$645 million ($760.79 million) purchase of Australia's Laminex group. Building will fund the acquisition through debt and a 43.7 million share placement and said the acquisition would be immediately earnings positive. The stock closed at 281 yesterday.
Market leader Telecom yo-yoed in a range of 485-490, and was down 4c at 487 at 11.30am. Its 21.5 per cent owner Verizon declined to comment on rumours it was hawking its stake around institutions. The sale rumour has been depressing Telecom's price.
Tranz Rail was up 1c to 169. Mr Witters said many of the institutions which had been forced to sell the stock as it dropped below investment grade credit rating had been cleared. While fear of the known was worse than fear of the known, the air had been cleaned a little.
There were few other moves of note. Baycorp fell 3c to 395, Cedenco fell 10c to 190, F&P Appliances rose 10c to 1050, Carter Holt Harvey fell 2c to 172, Independent Newspapers fell 5c to 330, and Winz fell 4c to 124.
There were 26 rises matched by 26 falls among the 93 stocks traded.
- NZPA
