Sharemarket edges down

Telecom shares lifted from seven-month lows in early trading today, as the broader market edged down.

After closing at $2.40 on Friday, having dropped as far as $2.38 during the day, Telecom shares were up 3c to $2.43 a few minutes after the sharemarket opened for the week.

Methven shares gained 5c to $1.54 after the company reported underlying half year net profit down 3.2 per cent to $4.2 million.

The company said the result was better than forecast, with a solid reduction in debt levels by reducing working capital and generating creditable group profitability.

Around 10.15am, the benchmark NZX-50 index was down 0.77 points to 3093.67, having fallen 32.9 points on Friday after Dubai asked creditors of its Dubai World for a six-month standstill on debt repayments

Shares falling early included NZX down 4c to $7.84, Fletcher Building down 3c to $7.70, Fisher & Paykel Appliances down 2c to 58c, and Guinness Peat Group down 2c to 80c.

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In the United States, stocks tumbled on Friday as concerns about the Dubai situation ripped through world markets and served as a reminder of how fragile the financial system remains a year after it nearly collapsed.

The Dow Jones industrial index fell 1.5 per cent to 10,309.92, the broader Standard & Poor's 500 index fell 1.7 per cent to 1091.49, and the Nasdaq composite index fell 1.7 per cent to 2138.44.

For the week, the Dow slipped 0.1 per cent, breaking a three-week winning streak. The S&P 500 index rose less than 0.1 per cent and the Nasdaq fell 0.4 per cent.

- NZPA