KEY POINTS:
The New Zealand sharemarket continued downward in early trade today, following a three-day slide last week.
The benchmark NZSX-50 index dropped 1.2 per cent on Friday and 1.4 per cent on Thursday, as interest rate fears weighed on investors after the Reserve Bank raised interest rates.
Soon after the sharemarket opened today the index was down a further 10.96 points to 4172.49.
That was despite US markets having reversed a three-day slide in the final session of last week, as bond yields retreated and oil prices fell, easing US worries about rising borrowing costs and inflation.
The New Zealand market was led down early today by top stock Telecom which shed 6c to 455, having lost 11c on Friday after announcing it would spend $300 million improving its mobile network.
The news came as no real surprise to the market, but the capital investment, combined with a Commerce Commission rejection of Telecom's proposed deadline for local loop unbundling, was seen as putting pressure on the stock.
Pumpkin Patch was also down early, dropping 15c to 365, having also lost 15c on Friday, after saying the strong dollar and interest rate hike were expected to lower its 2007 profit.
The Warehouse was unchanged early on 605, after sliding 50c on Friday following the release of a commission decision blocking takeover bids by Woolworths and Foodstuffs.
Other stocks to fall early included Air New Zealand, off 3c to 302, ANZ down 47c to 3200, Contact down 3c to 866, Fisher & Paykel Appliances down 11c to 366, Freightways down 10c to 420, Hallenstein Glasson off 2c to 494, Infratil down 2c to 328, Nuplex down 5c to 690, Port of Tauranga down 3c to 682, and Sanford down 5c to 455.
Stocks rising early included Auckland International Airport up 1c to 266, AMP up 4c to 1129, Cavalier up 4c to 325, Fletcher Building up 5c to 1255, Hellaby up 4c to 384, Restaurant Brands up 1c to 89, Sky TV up 2c to 560, and Tourism Holdings up 1c to 276.
- NZPA