NZ share market opens lower

By NZPA

Monday 18th December 2006

The share market opened the new week lower after performing well on Friday.

The NZSX-50 opened down 5.315 points at 3987.255. It rose 24.73 points to a new record on Friday on the back of a strong performance by Telecom.

US stocks also rose in heavy volume on Friday, pushing the Dow to a record as tame consumer prices reassured investors inflation was under control.

In New Zealand, Telecom was down 3c at $4.75 today.

Fletcher Building eased 3c to $10.79 after National Business Review speculated last week that the company was looking at a large acquisition.

Michael Hill declined 5c to $6.80.

Air NZ was up 1c at $1.79 and AMP Office was up 1c at $1.22.

Tower rose 2c to $2.35 and Tourism Holdings rose 2c to $1.95.

Fisher & Paykel Appliances was up 2c at $3.96.

In the US sliding energy shares braked the market's advance after investors took profits in the sector after several days of sharp gains.

The November report on the US Consumer Price Index relieved worries the Federal Reserve might have to resume raising interest rates to keep inflation in check and bolstered the view the economy may slow at a moderate pace and avoid recession. General Electric Co shot up 3.2% helping boost the wider market.

The Dow Jones industrial average gained 28.76 points, or 0.23%, to end at 12,445.52. The Standard & Poor's 500 Index added 1.60 points, or 0.11%, to finish at 1427.09. The Nasdaq Composite Index rose 3.35 points, or 0.14%, to close at 2457.20.

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