Sharemarket down in early trade

The New Zealand sharemarket was down in early trading, after a sharp sell-off in Chinese stocks dragged down equity markets around the world.

Around 10.15am the benchmark NZX-50 index was down 11.21 points to 3086.79, having fallen 11.3 points yesterday.

Stocks falling early included Contact Energy, down 5c to $6.20, Freightways down 3c to $2.98, Mainfreight lost 5c to $5.05, NZ Refining Co dropped 4c to $5.12, Port of Tauranga was down 6c to $6.54, Restaurant Brands lost 3c to $1.00, Steel & Tube was down 5c to $3.45, and Trustpower lost 3c to $7.57.

Among few stocks to gain early, Fletcher Building added 3c to $7.89, and Dorchester Pacific added 3.7c to 10c after news the former owners of Vodka company 42 Below had picked up a 19.47 per cent stake in Dorchester for $400,000.

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In the United States, stocks fell as concerns about the global economy's health weighed on Wall Street following the sell-off in Chinese equities.

Energy shares led the decline, while oil slipped below US$70 a barrel on increased worries about global energy demand.

The Shanghai Composite Index fell nearly 7 per cent to a three-month low on fears that China's government is trying to moderate economic growth and choke off speculation in its stock market by tightening bank lending.

The Dow Jones industrial average fell 0.5 per cent to end at 9496.28, the Standard & Poor's 500 Index shed 0.8 per cent to 1020.62, and the Nasdaq Composite Index declined 1 per cent to close at 2009.06.

- NZPA