KEY POINTS:
New Zealand shares were flat in early trading after yesterday's equity rebound in the United States proved to be short-lived.
Air New Zealand was up 1c to 82 early on small volumes after reporting a 79 per cent fall in first half net profit to $24 million. The airline was optimistic about the chances of a significantly improved financial performance in the second half.
Around 10.15am the benchmark NZX-50 index was up 2.66 points to 2502.48, having rebounded off five-year lows yesterday to close up 12.3 points.
Yesterday's moderate gain had followed a rise of more than 3 per cent by US stocks as they snapped back from 12-year lows.
But US investors wavered again in the latest session as banking shares continued to trade unpredictably.
Fletcher Building gained 5c early to $5.40, Contact Energy was up 3c to $5.83, while Telecom was unchanged on $2.46.
Shares gaining 1c included NZ Oil & Gas to 123, Rakon to 72, and Tower to $1.38. Shares falling 1c early included Steel & Tube to $2.70, ING Medical Properties to $1.14, and Fisher & Paykel Appliances to 49.
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In the US, stocks fell as more weak housing data reinforced fears about the economy, while banks weakened in late trading after the government launched tests to gauge their ability to withstand a long and deep recession.
After a choppy session that saw indexes swing both up and down, the Dow Jones industrial average, Standard & Poor's 500 Index, and the Nasdaq Composite Index all ended down provisionally 1.1 per cent.
- NZPA
