Wellington, May 28 NZPA - Fisher and Paykel Appliances shares stood out against a falling New Zealand stockmarket, as the Government announced a conservative budget and Wall Street dropped.

Following US markets overnight, the NZSX-50 fell from opening, Hamilton, Hindin, Greene director Grant Williamson said.

"Some nervousness over there caused the [US] market to lose about 200 points. It appears to be surrounding speculation GM is approaching bankruptcy. That's causing a few ripples through the local equity scene."

However, the responsible budget "held few surprises" and improved cash rates slightly.

"I think investors -- both local and international -- will take heart in what the budget held," Mr Williamson said.

The benchmark NZSX-50 index closed down 47.806 points, or 1.73 percent, at 2721.98. Turnover was 58,202,161 shares worth $112.96 million.

There were 28 rises and 57 falls among the 120 stocks traded.

Fisher and Paykel gained 3c, or 2.9 percent, to 106 after the company said Chinese company Haier would become its 20 percent shareholder and it will raise $143m from an underwritten one-for-one rights issue at 41c a share.

Telecom closed at 251, losing 10c or 3.83 percent. Fletcher Building closed at 630, down 10c or 1.56 percent. Contact Energy closed down 5c to 572 and SkyCity closed down 5c, down 1.75 percent to 280.

The Mainfreight result released today was in line with expectations, and served as a good bellwether for New Zealand logistics companies, Mr Williamson said.

Shares in the freighting company fell 31c or 6.33 percent to 459.

"The outlook for Mainfreight was continued tough times. It seems to be all the companies are saying the same thing at the moment -- no real signs of improvement ."

Tapmaker Methven traded heavily today, with 20 percent of the company changing hands, with AMP Capital investors being the sellers. Trading closed at 127, down 9c or 6.62 percent, with 14.5m trades.

Other stocks falling included Nuplex, down 1c to 56, Auckland Airport, at 159, down 3c and Pike River Coal at 108, down 1c.

In the US, the decline was broad-based, while shares of General Motors Corp tumbled 20.1 percent as the automaker faced a failed debt exchange, setting the stage for a bankruptcy filing expected by the end of the month.

The Dow Jones industrial average fell 2.1 percent to end at 8300.02, the Standard & Poor's 500 Index was down 1.9 percent at 893.06, and the Nasdaq Composite Index was down 1.1 percent at 1731.08.

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