NZ stocks: Market stabilises after choppy ride

12.00pm

The sharemarket stabilised this morning after a 1.2 per cent loss yesterday and a 1.8 per cent gain on Monday.

The NZSX50 was up just 3.78 points to 2125.09 and the NZSX40 capital index was up 2.41 points to 2188.63 points at 11.45am.

The market got a positive steer from Wall Street where US stocks closed higher, erasing a sharp morning sell-off. Investors focused on the bright spots in a key US manufacturing survey and the dismissal of lawsuits against leading Wall Street firms.

The market initially tumbled after the Institute for Supply Management's US factory gauge edged up to 49.8 in June from 49.4 in May, but still fell far short of Wall Street forecasts for a rise to 51.0. A number above 50 signals growth.

The Dow Jones industrial average gained 55.51 points, or 0.62 per cent, to 9,040.95, while the broader Standard & Poor's 500 Index was up 7.81 points, or 0.80 per cent, at 982.31. The technology-laced Nasdaq Composite Index rose 17.26 points, or 1.06 per cent, to 1,640.06, based on the latest data.

Turnover was a modest $25.3 million by 11.30am with market leader Telecom predominating. It was unchanged at 519.

Tower Ltd, which yesterday said it was recommending an alternative $211 million capital injection to the Guinness Peat Group's proposal, was down 2c on 138 by 11.45am. GPG was steady, on 158.

Contact Energy, which this week stretched to a record high of 508, was up 2c to 502.

Blis was up a cent to 33c despite the sudden death of founder Howard Paterson.

The Fisher & Paykel stocks had mixed fortunes today with Appliances down 5c to 1340 and Healthcare up 5c to 1255.

The Warehouse was up 2c to 507, while fellow retailer Pacific Retail was up 3c to 218, but Hallenstein Glasson was down 5c to 280.

Other movers included Westpac NZ, up 10c to 1790, Sky TV up 9c to 455, TrustPower, down 9c to 491, and Mooring Systems, down 4c to 140.

There were 41 rises and 30 falls among 110 stocks traded by 11.30am.

- NZPA