NZ stocks: Wall St worries send NZ sharemarket down

12.00pm

Shares dropped today as fresh accounting concerns in the United States sent Wall Street scurrying lower.

Volume was a minuscule $10 million by 11.30am. ABN Amro broker Nigel Scott said investors were convinced there would be more accounting scandals in the US and that was a good reason to stay side-lined.

He said people were still questioning why the Reserve Bank had hiked interest rates last week.

US stocks fell as questions about how drug giant Merck and Co booked billions in revenues renewed investors' anxiety about possible accounting improprieties.

In addition to Merck, the market had one eye on congressional hearings where an influential Wall Street analyst and executives from WorldCom Group faced aggressive questioning from lawmakers about WorldCom's US$3.8 billion ($NZ7.9 billion) accounting scandal.

The Dow Jones industrial average fell 104.25 points, or 1.11 per cent, to 9275.25, and the Nasdaq composite dropped 42.69 points, or 2.95 per cent, to 1405.67.

The NZSE-40 Capital Index was down 9.24 points to 2085.60 at 11.30am following on from yesterday's 1.3 per cent gain.

Most of the fall was attributable to the two top stocks, with Telecom off 5c to 510 and Carter Holt Harvey down 3c to 195 ahead of its half year result next week.

Blis was up 6c to 58 after media reports yesterday that sales of its throat remedy were going well.

Tranz Rail fell to new record lows, slumping 6c to 250, following its profit warning.

BIL International, formerly Brierley Investments, which has been the top performing stock for the year, was down 1c at 76c.

Air New Zealand was up 1c to 67c while Auckland Airport was down 2c at 428. GPG was down 3c at 168. Thinly traded Mooring Systems rose 4c to 110.

There were 14 rises and 33 falls among the 93 stocks traded.

- NZPA