NZ stocks: Shares mark time ahead of long weekend

12.30 pm

The sharemarket was flat in morning business on very light turnover as investors stayed away from the market ahead of the long weekend.

The NZSE-40 index was down 0.52 points at 1901.15 by 11.30am on turnover of just over $31 million.

"Global markets were pretty weak last night, particularly European markets, so that's given us a slightly negative overlay here," JB Were broker Murray Rutherford said. "It feels like it wants to come back a bit."

While some private sector economists are now expecting the Reserve Bank to cut interest rates by another half a percentage point at its November 14 review, JB Were said that would surprise.

"I think with the underlying strength of the economy and the low level of unemployment we would be more predicting a quarter point," said Mr Rutherford.

A larger cut would be a fillip for the market. "Lower interest rates is good for equities, there's no question about that," said Mr Rutherford.

Telecom underpinned the market with a 1c rise to 432 although it earlier traded up to 436.

Baycorp on the other hand was down 20c to 1160.

Air New Zealand B shares were off 3c to 25c as were the As to 27c.

Ports of Auckland was down 7c to 548. The National Business Review reported today that new Auckland mayor John Banks wants the city to sell assets to pay for a ring road. Infrastructure Auckland owns 80 per cent of the company.

International Airport, 25.75 per cent owned by Auckland City Council, and also a possible source of road funding, was however, up 1c to 321.

DB Group was up 4c to 549, Independent Newspapers was up 7c to 332, Westpac NZ was down 15c to 1580 and Blis was down 3c at 74.

There were 23 rises and 27 falls among the 103 stocks traded.

- NZPA