NZ stocks: Vertex debuts on quiet market

12.00pm

The debut at a 4 per cent discount of Vertex, Carter Holt Harvey's spin-off plastics packaging business, was the only highlight on a quiet sharemarket this morning.

The company picked a tough environment to list in as investors sat back because of lingering concerns in the United States about corporate accounting and worries that al Qaeda will attempt a fresh attack around the Independence Day holiday on July 4. A quiet week is expected because of the holiday.

Locally, economists expect the Reserve Bank to hike interest rates again on Wednesday despite the slowing economy and the rising New Zealand dollar.

The Reserve Bank of Australia will also publish its rates decision on Wednesday with economists predicting it will hold rates steady.

Vertex, just the second main board listing for the year listed at $1.97 against its issue price of $2.05. It later fell further to $1.92 -- some 6.3 per cent below the issue price.

The NZSE-40 Capital Index was up 0.96 points to 2069.20 at 11.30am on turnover of just $14 million.

"Markets will take a wait-and-see attitude for the next little while," said ABN Amro broker Nigel Scott.

Among the leaders, Telecom was up 2c at 495, Carter Holt Harvey was down 2c to 196, Fletcher Building was down 1c at 274, Sky City rose 8c to 628, The Warehouse rose 5c to 745 and Fisher & Paykel Healthcare was square at 825, recovering from early weakness.

There were 25 rises and 26 falls among the 95 stocks traded.

- NZPA