NZ stocks: Market retreats on light volume

12.00pm

The sharemarket eased today on light volume as market heavyweight Telecom succumbed to profit taking and downward pressure from overseas markets.

By mid-morning, the NZSE-40 Index was down 10.30 points, or 0.52 per cent, to 1981.11 on volume of $30.60 million.

Some $17 million of the volume was in Telecom, which was down 4 cents to 493.

United States stocks sank after a seesaw session as gnawing worries over earnings of giants such as Dow Chemical and Cisco Systems and the threat of war eroded the previous day's fat rally.

The blue-chip Dow Jones industrial average fell 183.18 points, or 2.31 per cent, to 7755.61, after rising more than 4.5 per cent on Tuesday.

The technology-laced Nasdaq Composite Index lost 26.42 points, or 2.18 per cent, to 1187.30, following its 3.5 per cent gain the day before.

Locally, Sky TV fell 9c to 320. ABN Amro broker Nigel Scott doubted it was due to fresh rumours that Telecom was considering selling its 12 per cent stake.

Rather, he said, it could be a victim of the stock exchange's planned new benchmark top-50 index, where its weighting will fall because of its low "freefloat".

Ports of Auckland, another with a low free float, gained 5c to 600, recovering from a fall earlier in the session below 600 for the first time since February, and well off its 712 high in March.

AMP, which has recently recouped some of its hefty losses, today fell back again today despite the London sharemarket having a good session. Shares in the Australian-based financial services company dropped 20c to 1385, although on minimal volume of 19,032.

Fellow insurer Axa fell 5c to 280, while elsewhere in the financial sector WestpacTrust, soon to change its name in New Zealand to Westpac, was off 10c to 1530; and Tower was unchanged at 381.

Rarely traded Dairy Brands rose 3c to 61.

Mainfreight, expected to be a winner from the P&O Nedlloyd restructure of its services to New Zealand ports, rose 2c to 108.

Among the blue chips, Carter Holt Harvey was up 1c at 161, Contact Energy lost 2c to 376, Fletcher Building lost 1c to 293, and casino operator Sky City was down 5c at 725.

The terrible twins of Skellmax and Vertex, which have underperformed since listing this year, were down 2c at 94 and 1c at 124 respectively.

Among the retailers, Pacific Retail was down 5c at 325, Hallenstein Glassons rose 1c to 281, and Briscoe Group fell 10c to 230, while The Warehouse was unchanged at 712.

Bluff-based South Port was up 5c at 170 despite warning shareholders today that last year's record performance was unlikely to be repeated this year. Ports of Auckland was up 5c at 605.

There were 38 falls and 17 rises among the 95 stocks traded.

- NZPA