NZ stocks: Sharemarket eases despite corporate activity

12.30pm

The sharemarket's benchmark dipped marginally by midday today after a brisk morning for news was accompanied by quiet trade as investors waited to see how new listing Feltex would trade on its market debut.

A t noon the NZSX-50 gross index was down 2.44 points to 2611.15, while the NZSX-All capital index was down 0.13 of a point at 878.87.

Turnover by 11.30am was $20.18 million and there were 25 rises and 24 falls among 109 stocks traded.

Direct Broking's Peter Lynds said it appeared the market had been in "wait and see" mode in advance of carpet maker Feltex's market debut at midday, the biggest listing on the local market in five years since Contact Energy was floated.

Feltex shares were issued at $1.70 each but traded at a 4.7 per cent discount to their issue price at $1.62 when they finally listed.

Fellow carpet maker Cavalier was up 2c to 483.

Tenon shares were 1c easier at 191 after Rubicon announced today it had been successful in its bid to win 50.01 per cent control.

Rubicon, whose shares were steady on 84c, said it had acceptances for 58 per cent of the company and would scale back these accordingly.

One of this year's sharemarket darlings, Mooring Systems Ltd (MSL), was down 10c to $3.35 by 11.30am after it announced it had placed 461,540 shares at $3.25 each to raise $1.5 million.

CDL Hotels New Zealand, the nation's biggest hotel operator, was unchanged at 42c after it raised its offer for the shares in Kingsgate International Corp it doesn't already own after the original bid was deemed unfair. Kingsgate was up 3c to 35.

Elsewhere, market leader Telecom was down 2c to 549, Contact Energy was up 2c to 571, Fisher & Paykel Appliances was up 2c to 469, Fisher & Paykel Healthcare up 5c to 1310, Fletcher Building up a cent to 440, Infratil down 2c to 296, Ports of Auckland down 3c to 727, Pyne Gould Corp up 9c to 529, and The Warehouse was up 2c to 430.

On Wall Street, US stocks fell as investor caution ahead of a forecast from technology bellwether stock Intel and a key employment report overshadowed positive news on oil prices and retail sales.

However, Wal-Mart Stores Inc was a bright spot on the blue-chip Dow index after the retailer reported higher sales in May at US stores open at least a year.

The Nasdaq Composite Index dropped 28.72 points, or 1.44 per cent, to 1960.26. The Dow Jones industrial average fell 67.06 points, or 0.65 per cent, to 10,195.91 and the broader Standard & Poor's 500 Index lost 8.35 points, or 0.74 per cent, to 1116.64.

- NZPA