NZ sharemarket down early

File photo / Paul Estcourt

The New Zealand sharemarket started the week with a fall, as shares in Pike River Coal declined after the company said it needed to seek a short-term working capital facility.

The facility was needed due to a combination of proactive steps taken to sustain the rate of underground mind development, the company said today. Talks with potential funders were at an advanced stage.

Shortly after the market opened Pike River shares were down 5c to $1.06, while those of major shareholder NZ Oil & Gas were down 3c to $1.28.

Around 10.15am, the benchmark NZX-50 index was down 5.5 points to 3206.76, having gained 16.6 points on Friday.

Ebos Group was down 2c to $6.98, Abano Healthcare gained 5c to $5.15, Sky TV lifted 2c to $5.17, Sanford gained 2c to $3.98, and Fletcher Building was up 2c - on top of its 14c gain on Friday - to $8.49. Telecom slipped 1c to $2.05 and Contact Energy was unchanged on $5.75.

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In the United States, the Nasdaq rose on Friday after reassuring earnings and an upbeat outlook from Oracle, with the broader market flat as the traditional trading volatility expected by the expiration of options failed to materialise.

The close of trading on Friday marked the quarterly expiration of September equity futures and option contracts, a convergence known as "quadruple witching," which tends to increase volume and swings in trades. Strategists said trading was relatively subdued, however, heading into the close.

The Dow Jones industrial average gained 0.1 per cent to 10,607.85, the Standard & Poor's 500 Index added 0.1 per cent to 1125.59, and the Nasdaq Composite Index climbed 0.5 per cent to 2315.61.

For the week, the Dow rose 1.4 per cent, the S&P 500 gained 1.5 per cent and the Nasdaq gained 3.3 per cent.

- NZPA