Market falls early as GPG loses 7pc

Shares in investment company Guinness Peat Group fell 5c in early trading following the removal of New Zealand-based Tony Gibbs as an executive director after he publicly opposed plans to spin off the company's Australian assets.

GPG shares were down 7.4 per cent to 63c, as efforts to pull away from an 11-month low 61c reached last week faltered.

After small declines by equities in the United States, the benchmark NZX-50 index in this country was down 7.66 points to 3000.75 around 10.15am, its lowest level in nearly three weeks as it fell back towards an 11-month low below 2970 reached earlier in June. Yesterday the index ended down 25.7 points.

Other shares down early included fishing company Sanford, which lost 2c to $4.00 and Auckland Airport down 2c to $1.87.

Contact Energy slipped 1c to $5.76 early, while among other leading stocks Fletcher Building was unchanged on $7.95 and Telecom was unchanged on $1.90.

Trustpower rose 3c to $.24 and Port of Tauranga lifted 2c to $6.64.

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In the United States, stocks ended slightly lower as gains in consumer-related stocks, including tobacco shares, were offset by losses in the energy sector.

Consumer shares rose after the government said personal spending rose moderately in May, exceeding expectations, after being flat in April.

Tobacco companies rallied after the US Supreme Court rejected an attempt by the US government to wrest billions of dollars in damages from the tobacco industry.

The energy sector weakened as US crude oil futures fell with the easing of fears that Tropical Storm Alex would disrupt production in the Gulf of Mexico.

The Dow Jones industrial average dropped 0.1 per cent to 10,138.52, the Standard & Poor's 500 Index slipped 0.2 per cent to 1074.57, and the Nasdaq Composite Index shed 0.1 per cent to 2220.65.

- NZPA