NZ stocks: Wall Street weakness holds market back

12.00pm

Wall Street's failure to respond to yesterday's surprisingly large interest rate cut gave the New Zealand sharemarket a weak tone when it opened today.

"There are no real features but the tone is definitely soft," Salomon Smith Barney broker Craig Robins said.

However, the benchmark NZSE-40 capital index clawed back from early negative territory into the positive and was up 3.13 points to 1959.32 on turnover worth $25.5 million by 11.35am.

The Dow Jones industrial average fell 185 points, 2.1 per cent, to 8586.24.

Telecom, under political pressure due to its charging policies for new rural lines, initially fell another 3c to add to yesterday's 13c slide, but was up 1c at 478 by 11.35am.

Trading in Telecom was over half the total market turnover. Telecom dived 9 per cent earlier this week after it issued a profit warning for its first quarter result due on Tuesday. It said it now expected a profit in the $145 million-$150 million range.

Another stock under the hammer this week, Tower, fell another 4c to 186. National Business Review today reported Tower's entire board was under pressure to resign.

Lion Nathan rose 3c to 608 on solid turnover worth $4.6 million following its result yesterday. The company said it expected double digit growth to continue.

Auckland Airport recouped some of yesterday's 10c loss, rising 4c to 509.

Fisher & Paykel Appliances roses 15c to 1100 after confirming its promise of a strong half year result. It reported a $34 million net profit compared with $12 million a year earlier.

F&P Healthcare, fell 20c to 1060 despite a generally well received result yesterday.

Tranz Rail came under renewed pressure, losing 5c to 132 to add to yesterday's 9c loss.

Fletcher Building rose 1c to 301 and Sanford dropped 10c to 490.

The Warehouse, which skidded 18c yesterday following its October quarter sales report, held steady on 730.

There were 34 falls and 26 rises among the 100 stocks traded.

- NZPA