NZ Shares: Market slips in early trading

The New Zealand sharemarket slipped in early trading today.

Around 10.20am the benchmark NZX-50 index was down 2.84 points to 2819.57, after yesterday gaining a modest 5.8 points.

Among the leading shares Fletcher Building lost 4c early to $6.78, Telecom eased 1c to $2.60, and Contact Energy was up 3c to $5.66.

Mainfreight was knocked early, down 9c or 2.1 per cent to $4.15, while Port of Tauranga lost 5c to $6.28 and Cavalier Corp dropped 5c to $1.85.

Fisher & Paykel Healthcare was down 3c to $3.12, Sky City slipped 2c to $2.78 and Ryman Healthcare dropped 2c to $1.58.

Among the few stocks to rise early NZ Farming Systems Uruguay gained 2c or 4 per cent to 52 on large volume.

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In the United States, the Nasdaq rose after an improved outlook from Texas Instruments lifted technology stocks, but news that 10 big banks will repay TARP funds failed to stir investor enthusiasm.

Stocks initially moved higher after the Treasury Department said 10 big banks will pay back US$68 billion ($110.1b) received under the Troubled Asset Relief Programme, or TARP, to the government. But the market quickly fell back on concerns that the money could be put to better use by making loans to businesses and consumers, which would boost the economy.

The Dow Jones industrial average dropped 0.02 per cent to 8763.06, the Standard & Poor's 500 Index gained 0.4 per cent to 942.43, and the Nasdaq Composite Index climbed 1 per cent to 1860.13.

- NZPA