NZ sharemarket in moderate early fall

The New Zealand sharemarket had a moderate early fall, after stocks in the United States succumbed to late-day selling in light trading as doubts arose about the speed and size of China's intentions for yuan flexibility.

Around 10.15am the benchmark NZX-50 index was down 6.26 points to 3061.98, after a 20.7-point gain yesterday.

Ryman Healthcare dropped 5c to $2.07, Tourism Holdings fell 3c to 81, Contact Energy was down 2c to $5.83, Fletcher Building dropped 2c to $8.19 and Telecom slipped 1c to $1.93.

Sky City Entertainment Group was down 2c to $2.84 after the company released profit guidance, saying it expected its reported net profit after tax for the year to June 30, before a one-off deferred tax adjustment, to be in a range between $136 million and $140m.

Telstra gained 5c to $4.20, adding to its 35c gain yesterday after it struck a deal to participate in Australia's broadband network plans.

***

In the US, the sharemarket's overall bearish tone eroded initial optimism around the benefits of China's yuan move. Stocks pulled back as investors questioned the effectiveness of what is expected to be a gradual change.

Pessimism that the plan would lead to higher costs on imports from China weighed on retailers. The Dow Jones industrial average fell 0.1 per cent to 10,442.41, the Standard & Poor's 500 Index was down 0.4 per cent at 1113.21, and the Nasdaq Composite Index was down 0.9 per cent at 2289.09.

- NZPA