NZ stocks: Market steadies as offshore bourses bounce

12.00pm

New Zealand shares steadied this morning despite an easing on Wall St overnight.

Just after 11am the NZSE-40 capital index was down 1.99 points to 1992.30 on turnover of $16.9 million.

Continued volume in Telecom shares was the main feature of early trading, with Telecom rising a cent to 508 on $10.7 million, two thirds of the turnover.

After four straight days of gains including a 4.8 per cent gain yesterday, Wall St's rally screeched to a halt on disappointing earnings forecasts, including for technology bellwether Intel, and a poor pre-market result by Motorola.

The Dow Jones industrial average slumped 219.65 points, or 2.66 per cent, to 8036.03, while the Nasdaq Composite Index slumped 50.02 points, or 3.9 per cent, to 1232.42.

The broader Standard & Poor's 500 Index sagged 21.25 points, or 2.41 per cent, to 860.02.

Such volatility, which has seen the Dow Jones traverse nearly a thousand points over the last week, was keeping investors focused on the local market, said ABN Amro Nigel Scott.

Other reasons for the sideways trading were money due on the Vector issue, and Auckland Airport, where people were waiting to get their entitlement back for their capital issue. Powerco's tender process was also "taking a bit of time".

"I think people are very much concentrating on a few stocks".

Back in New Zealand, AMP fell 20c to 1440 after rising 35c yesterday, and Fletcher Forest preference shares were up a cent to 22 on solid volume, while ordinary shares fell a cent to 21.

Forest products company Carter Holt Harvey rose 2c to 161 on light volume after announcing a healthy $60 million third quarter profit yesterday, bolstered by the strong Australian housing market. The result compared with $15 million for the same quarter last year.

Dental concern Software of Excellence rose 10c to 170 after announcing yesterday that it was buying Advanced Healthcare Computing, the third largest dental software provider in Britain, to complement its inroads there. The $2.5 million purchase will be made partly in scrip, with the rest to be determined.

Guinness Peat Group rose a cent to 152 on light turnover after announcing a reverse takeover of British machinery maker Brunel, and Independent Newspapers Ltd retraced the 5c it gained yesterday to 295.

Colonial Motors shares jumped 20c to 320, while Port of Tauranga gained 10c to 170 and Air NZ shares fell 2c to 50 on moderate turnover.

There were 26 rises and 34 falls among the 97 stocks traded so far.

- NZPA