New Zealand shares down in tepid midday trading

WELLINGTON, Jan 26 (Reuters) - New Zealand shares were

slightly lower on Tuesday after Wall Street sold off, pulled

lower by further weakness in oil prices.

New Zealand's benchmark S&P/NZX (Other OTC: NZSTY - news) 50 index was down

0.3 percent, or 17 points, at 6,157.9.

The S&P/ASX 200 index was closed for Australia Day.

Wellington-based First NZ Capital Broker Philip Hunter said

the weaker tone in offshore markets coupled with a holiday in

Australia means "it will be very much a day of treading water in

New Zealand as investors await developments offshore."

Leading the slide was A2 Milk, down 2.7 percent and

Trade Me (NZSE: TME.NZ - news) , down 2.6 percent. In both cases, volumes were

extremely light. In the other direction, Coats Group (LSE: COA.L - news)

was up 2.1 percent.

Hunter said with no local drivers the market may just

continue to drift down over the session.

"We are just going to see a fairly quiet day, albeit it a

bit weaker," said Hunter.

(Reporting by Rebecca Howard)