NZ stocks: Sleepy shares start week in negative territory

The sharemarket was enjoying a post-daylight saving sleep-in this morning ahead of an fairly featureless week.

Just after 11am the NZSE-40 capital index was down 5.88 points to 1974.88 on turnover of $18.7 million.

"There's not a lot of action from overseas...but the little old kiwi market goes the same way," said Alan Wills, a broker with Forsyth Barr Frater Williams.

Telecom was the early frontrunner in turnover with two million shares worth $9.9 million changing hands as last month's Verizon selldown continued to reverberate around the stockmarket. It eased 4c to 486 in early trade.

Troubled AMP shares fell 35c to 1350 as the stock went ex-dividend A26c (NZ30.03c) and fellow financial sector stocks, Tower (down 2c to 380) and WestpacTrust (down 25c to 1500), also dropped.

Several other stocks were also going ex-dividend today - Hellaby fell 11c to 276 on an dividend payout of 10c; Cavalier was untraded at 630 (ex-dividend 17.50c); Southport was untraded at 165 (ex 3.75c); Lyttelton Port was down 4c to 146 (ex 7.25c) and Michael Hill was untraded at 561 (ex 10c). Ebos last traded at 299 (ex 8c).

There was not a lot of corporate news expected this week with a Telecom AGM on Thursday and August retail trade figures tomorrow.

Otherwise the week would be "determined by ebbs and flows and offshore markets", Mr Wills said.

Other stocks to move included Contact up 5c to 380, Pacific Retail down 5c to 310, Telstra down 6c to 545 and newly listed Turners Auctions down 10c to 222.

Air NZ was down a cent to 48 on slight turnover, Affco rose a cent to 15.5 on half a million shares, and Baycorp Advantage fell 5c to 330 as it announced a $A10 million defamation settlement.

So far there have been 20 rises and 36 falls on 94 stocks traded.

On Friday night, Wall St stocks eased for the sixth week running after a host of dismal company outlooks and a $28 billion judgment against cigarette manufacturer Philip Morris.

The blue-chip Dow tumbled 188.79 points, or 2.45 per cent, to 7528.79 according to the latest figures, slamming to its lowest close since November 1997. The broader Standard & Poor's 500 Index fell 18.37 points, or 2.24 per cent, to 800.58.

The technology-packed Nasdaq Composite Index lost 25.66 points, or 2.20 per cent, to 1139.90, sinking to its lowest level since September 1996.

- NZPA