NZ sharemarket lower after commodity rout

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Shares in South Island gold miner OceanaGold fell 6.5 percent to an eight-week low in early trade on the New Zealand sharemarket, after commodity prices were routed for the second time in a week.

The commodity decline was behind a sharp drop in shares in the United States, but in this country the sharemarket was only modestly lower shortly after opening.

Around 10.20am the benchmark NZX-50 index was down 2.58 points to 3556.29, having yesterday climbed 30.1 points to its highest level in nearly three years.

OceanaGold shares were down 22c to 315 after an 8 percent fall in spot silver prices, while spot gold fell 1 percent.

Sky City shares were down 3c early to 372, Steel & Tube lost 2c to 263, and Telecom slipped 1c to 230 after yesterday's 7c rise.

Mainfreight gained 4c to 935, Scott Technology was up 2c to 145, Fletcher Building was unchanged on 905, and Contact Energy was down 1c to 603.

In the United States, stocks nearly erased a three-day rally as energy and other commodity shares sank, feeding worries about the market's ability to stay on its upward path.

The Dow Jones industrial average was down 1 per cent at 12,630.03, the Standard & Poor's 500 Index was down 1.1 per cent at 1342.08, and the Nasdaq Composite Index was down 0.9 per cent at 2845.06.

- NZPA