Shares fall in early trade

The New Zealand sharemarket fell in early trading, dominated by declines in leading companies.

Among the top shares, Fletcher Building was down 6c to $7.79 a few minutes after the market opened, Contact Energy also fell 6c, to $5.99, and Telecom was down 3c to $2.54.

Around 10.15am, the benchmark NZX-50 index was down 14.42 points to 3126.75, after yesterday gaining 12.8 points.

Shares in rural services company PGG Wrightson were in trading halt, with the company announcing it plans to raise $180.7 million through a rights issue, offering nine new shares for every eight shares held at a price of 45c each.

NZ Refining shares were down 4c to $5.02, Trustpower was down 3c to $7.45, Infratil down 2c to $1.49, and Restaurant Brands down 2c to $1.47.

Retailer Hallenstein Glasson gained 5c to $3.18 early, but only on low volume.

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In the United States, stocks lost ground as semiconductors dragged tech shares lower after a brokerage's bearish view of the industry and doubts about the strength of the economic recovery cut the appetite for risk.

The Dow Jones industrial average dropped 0.9 per cent to close unofficially at 10,332.60, the Standard & Poor's 500 Index fell 1.3 per cent to finish unofficially at 1094.90, and the Nasdaq Composite Index lost 1.7 per cent to close unofficially at 2156.82.

- NZPA