NZ stocks: Shares fall back early

The New Zealand sharemarket fell back in early trade after a broad sell-off in United States stocks.

Contact Energy was down 9c early to 576 and TrustPower lost 10c to 770.

A Commerce Commission report released yesterday found the four largest electricity generator-retailers - Contact, Genesis, Meridian and Mighty River Power - overcharged by $4 billion.

Later , Energy Minister Gerry Brownlee said power companies should not put up prices this winter.

TrustPower today said its chief executive of eight years, Keith Tempest, was planning to step down at the end of the year.

Around 10.15am the benchmark NZX-50 index was down 13.14 points, or 0.5 per cent, to 2763.17, having fallen 24.8 points yesterday.

Fletcher Building was down 10c early to 645, on top of a 6c fall yesterday, while market leader Telecom was unchanged on 258 after falling 4c yesterday.

Other early falls included Pike River Coal down 3c to 107, Freightways down 3c to 300, and Cavalier Corp down 2c to 176.

Ryman Healthcare, which yesterday reported a 9 per cent fall in full year net profit to $66.1 million but a 5 per cent rise in realised profit to $53m, gained 2c today early to 165.

In the US, stocks slid as concerns about the US fiscal condition led investors to exit US dollar-denominated assets across the board.

Markets came under severe selling pressure as a result of an outlook downgrade for Britain's triple-A credit rating heightened fears that the US, with its increasing budget deficit and weakened economy, could face a similar fate.

The Dow Jones industrial average dropped 1.5 per cent to 8292.13, the Standard & Poor's 500 Index fell 1.7 per cent to 888.33, and the Nasdaq Composite Index lost 1.9 per cent to 1695.25.

- NZPA