Sharemarket lower early

Thursday 5th May 2011

The New Zealand sharemarket was lower in early trading, after stocks in the US fell for a third day as weak economic figures heightened stock investors' anxiety.

Telecom (NZX: TEL ) was down 2c to $2.14.5 in early trading today after the Commerce Commission slashed the cost of terminating calls and texts from one operator on another operator's network.

Around 10.15am the benchmark NZX-50 index was down 4.9 points to 3490.29, having edged up less than 0.1 of a point yesterday.

Sky City (NZX: SKC ) was also down 2c early, to $3.57, and Scott Technology (NZX: SCT ) lost 4c to $1.43, while The Warehouse (NZX: WHS ) gained 2c to $3.75, and Port of Tauranga (NZX: POT ) lifted 3c to $8.65 on low volume.

In the US, hardest hit stocks included recent winners in the energy and industrials sectors, in what some said was the outset of extended weakness for stocks.

"I think there is a chance that we put the high in for the year," said Doug Kass, founder and president of Seabreeze Partners Management in Palm Beach, Florida.

Reports showed activity in the vast US services sector slowed and hiring by private companies was weaker than expected in April. The new orders index in the purchasing managers survey hit its lowest since December 2009.

The releases "call into question the bullish notion of a smooth, self-sustaining recovery," Kass said.

The Dow Jones industrial average lost 0.7% to 12,723.58, the Standard & Poor's 500 Index fell 0.7% to 1347.32, and the Nasdaq Composite Index dropped 0.5% to 2828.23.

NZPA

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