NZ stocks: Shares slump in thin trade

12.00pm

New Zealand shares weakened broadly this morning as a lack of liquidity accentuated price fluctuations.

The benchmark NZSE-40 capital index slumped 14.07 points, or 0.73 per cent, to 1920.53 on skinny turnover worth $9.3 million.

The Top 40 shed almost 1 per cent yesterday, and Wall St was down on the back of weak economic data and continued war fears.

"It's a case of people sitting on their hands. New money doesn't need to rush into the market because of overseas and general global concerns," said Bryon Burke, a broker for ABN Amro Craigs.

"Why buy today when you can probably buy at the same price in a couple of weeks' time?"

Just after 11am, Sky TV was one of the popular stocks, steady at 355 on $1.2 million turnover, after a 13c fall yesterday. Sky and its majority owner, publisher INL, rallied strongly the day before in anticipation of yesterday's positive first half results.

Also strongly traded was Air New Zealand, down 2c to 53 after Australian rival Qantas yesterday released a record half year net profit of A$513 million ($557.12 million) before tax.

Qantas and Air NZ are seeking regulatory approval to allow Qantas to take 22.5 per cent of its New Zealand rival.

Retail stocks weakened this morning, with Briscoe dipping 8c to 236, Hallenstein Glasson down 8c to 262, and the Warehouse shedding 12c to 548, compounding its 20c loss yesterday.

Plastic container maker Vertex eased 4c to 147 after lowering its full year pre-tax earnings forecast by around $1 million.

The stock fell 14c yesterday in response, reportedly surprising Christchurch businessman George Gould who had just doubled his stake in the company to 19.85 per cent.

Rural servicing company Wrightson was down 4c to 111 following a fall in first half profit yesterday, blighted by a chilly spring.

Biotechnology firm Rubicon was down a cent to 70c today after it ramped up its Fletcher Forests stake this week to just under 20 per cent.

The move has raised eyebrows since Rubicon, Forests' biggest shareholder, tried to exit the company through the failed Central North Island Forestry Partnership deal last year.

Other moves of substance included Contact Energy down 4c to 456, Telecom down 3c to 446, and a 30c rise for DB Breweries to 590, but it was all on light turnover.

Falls outnumbered rises by 50 to 10 among the 97 stocks traded.

On Wall St, the Dow Jones industrial average fell 85.64 points, or 1.07 per cent, to 7914.96, based on the latest figures. The broader Standard & Poor's 500 Index shed 8.03 points, or 0.95 per cent, ending at 837.10. The Nasdaq Composite Index slipped 3 points or 0.23 per cent, closing at 1331.23.

- NZPA