Investors appeared unimpressed with frequency control product manufacturer Rakon's full year results, cutting the company's share price 6.5 percent in the first few minutes of trading on the New Zealand sharemarket.
Investors appeared unimpressed with frequency control product manufacturer Rakon's full year results, cutting the company's share price 6.5 percent in the first few minutes of trading on the New Zealand sharemarket.
Despite the 8c drop to 116 in Rakon's stock price, and falls in stock markets around the world, the benchmark NZX-50 index was flat in early trading. Around 10.15am the benchmark NZX-50 index was up 0.45 points to 3558.5, after yesterday finishing up 14.2 points.
Rakon reported a 31 percent rise in full year revenue to $189.3 million as it capitalised on growth in the use of smart wireless devices and data usage across telecommunications networks.
Telecom shares fell 3.5c early to 233, Fletcher Building fell 3c to 905, and Contact Energy was down 2c to 599.
Early risers included Mainfreight up 5c to 940, Cavalier Corp up 5c to 370, and NZX up 4c to 234.
Around the world, stocks were mainly lower, reacting to Europe's debt crisis and data that spurred new doubts about the global economic recovery, although a late pick-up in the euro brought commodities off early lows.
The FTSEurofirst 300 index of top European shares closed down 1 percent at the lowest close since April 19, as disappointing economic numbers hurt sentiment.
In the United States, disappointing figures from Wal-Mart and Hewlett-Packard weighed on the market, although a late rebound suggested investors may be looking for a short-term bounce.
Recent weakness in sectors tied to economic growth and the sharp decline in commodities have spurred talk of a prolonged pullback. Short term traders see an opportunity, judging by late gains in certain energy names and financials' strong performance.
The Dow Jones industrial average dropped 0.6 percent to 12,479.58, and the Standard&Poor's 500 Index dropped 0.04 percent to 1328.98, while the Nasdaq Composite Index gained 0.03 percent to 2783.21.
