New Zealand shares slipped into the red in morning trade, after the brief surge in optimism following the Greece election evaporated on speculation Spain and Italy will be the next euro zone nations to go down the debt spiral.
Fisher & Paykel Healthcare led decliners, while PGG Wrightson rose.
The NZX 50 Index fell 2.9 points, or 0.08 per cent, to 3452.78 as of noon. Almost 21 million shares changed hands in the first two hours of trade, with turnover value of $48.7m.
The New Zealand dollar recently traded at US79.23 cents, up from US79.05c at 8am, but down from US79.34c at 5pm yesterday.
Across the Tasman, Australia's S&P/ASX 200 Index fell 0.6 per cent to 4112.60, while Japan's Nikkei 225 Index opened 0.2 per cent higher at 8700.28.
F&P Healthcare, the maker of breathing masks and respirators, fell 2.8 per cent to $2.09, amid speculation a slowdown in the global economy will dent demand for its products. The company generates about half of its revenue in US dollars.
Cavalier, the listed carpet maker, fell 1.8 per cent to $1.66.
Chorus, the telephone network company, fell 1.3 per cent to $3.06. The stock has been under pressure since regulators announced they are looking at lowering the cost charged to rivals to access the firm's copper network.
Fletcher Building, whose chief executive Jonathan Ling announced he will be retiring at the end of September, fell 0.6 per cent $6.26.
Goodman Property Trust, the listed real estate investment vehicle, fell 0.5 per cent to 99c. Over 8.7 million shares changed hands in morning trade, representing just under 10 per cent of the trust's market capitalisation.
Kiwi Income, one of New Zealand's major shopping mall owners, fell 0.5 per cent to$1.06.
Telecom, the blue chip phone company, fell 0.2 per cent to $2.49.
PGG Wrightson, the rural services firm, rose 3.5 per cent to 30c. The stock is rated as "hold" according to a Reuters poll of five analysts, with a median price of 44c.
Contact Energy, the listed power company, rose 1.7 per cent to $4.87, amid bets by investors that yesterday's sell down was over done.
The stock yesterday lost its top three position on the bourse under a weighting reshuffle, forcing index tracking fund managers to adjust their portfolios accordingly.
SkyCity Entertainment Group, the casino and hotel operator, rose 0.3 per cent to $3.55.
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