Sharemarket dips in early trade

The New Zealand sharemarket dropped slightly in opening trading this morning.

The benchmark NZX-50 index, which ended yesterday at 3155.654, was down 4.374 points, or 0.14 per cent, to 3151.280 at 10.15am.

Most stocks in the red lost only a few cents. Tower shed 2c to $1.70, Guinness Peat Group was down 1c to 90 and Auckland Airport lost 1c to $1.91.

Freightway was down 3c to $3.21, Air New Zealand dipped 1c to $1.20, Telecom lost 1c to $2.62 and The Warehouse was down 1c to $4.09.

Only four stocks rose this morning; Pike River Coal gained 1c to $1.02, Fisher & Paykel Healthcare was up 2c to $3.23, Goodman Fielder was up 1c to $2.01 and Fletcher Building was up 1c to $8.36.

A trading halt was placed on Rakon shares this morning, just before the quartz crystal component engineering company announced it would begin building a new Chinese manufacturing plant with its joint venture partner Timemaker.

It is trying to raise $65 million to expand its Chinese operations. Yesterday Rakon closed at $1.49.

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On Monday, The Australian share market closed marginally weaker amid profit-taking, although companies with exposure to the United States gained ground.

The benchmark S&P/ASX200 index fell 15.8 points, or 0.34 per cent, to 4677.4, while the broader All Ordinaries index was down 9.6 points, or 0.2 per cent, at 4684.1.

In the United States yesterday stocks mostly fell but ended off their lows as investors moved into technology and health care shares.

According to preliminary calculations, the Dow Jones industrial average fell 41.34, or 0.4 per cent, to 9778.86, after earlier falling as much as 95 points.

The broader Standard & Poor's 500 index fell 3.64, or 0.3 per cent, to 1064.66, while the tech-heavy Nasdaq composite index rose 5.18, or 0.2 per cent, to 2138.04.

About two stocks fell for every one that rose on the New York Stock Exchange, where volume came to 1.2 billion shares compared with 2.3 billion Friday. Volume was heavy last week because of the expiration of options contracts.

- NZPA