Recommended.co.nz | Guide2.co.nz | Voxy.co.nz | Gimme.co.nz
Homepage | login or create an account

NZ Sharemarket Sliding, Hopes Of US Post-Election Rally Dashed

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Nov 7 NZPA - The New Zealand sharemarket was sliding in early trading, following world markets down as recession looms in the United States and Europe.

Far from a post-election rally in the US, stocks there now appear likely to retest recent lows -- and possibly head even lower.

In this country, the benchmark NZSX-50 index was down 47.4 points or 1.67 percent to 2792.73 around 10.20am.

Telecom was down 7c early to 220, after posting a 34 percent fall in first quarter net earnings to $149 million, while reporting it has not yet experienced a significant impact from the economic downturn.

The company said its earnings before interest, tax, depreciation and amortisation (ebitda) of $466m for the three months to September were 3.3 percent down on the equivalent quarter in 2007.

Among other leading stocks Fletcher Building lost 17c early to 594 and Contact Energy gave up 14c to 729.

Sky TV was down 10c to 375, after losing 25c, or 6.1 percent, yesterday following the release of profit guidance for 2009 that was less than analysts' consensus forecast.

Mainfreight was down 10c to 519, NZX down 7c to 598, Nuplex down 7c to 518, NZ Oil & Gas down 6c to 130, and Sky City down 6c to 312.

Losing 5c early were Hallenstein Glasson, to 233, Pike River Coal to 118, and Steel & Tube to 295, while Fisher & Paykel Appliances dropped 4c to 151.

Carpet maker Cavalier Corporation was looking lonely with a 2c gain to 230, although the rise was made on low volumes.

Overnight, the FTSEurofirst 300 index of European shares closed down 5.78 percent, led by banks and energy shares.

The MSCI world equity index lost 4.77 percent. Tokyo's Nikkei 225 index closed down 6.53 percent.

US stocks sold off in their worst two-day slide since October 1987 with disappointing corporate outlooks and bleak sales from major retailers fueling fears of a deepening economic downturn.

Unofficially, the Dow Jones industrial average tumbled 4.9 percent, the Standard & Poor's 500 Index sank 5 percent , and the Nasdaq Composite Index fell 4.3 percent.

NZPA WGT Reuters mjd kn

Credit Card Comparison TablesCompare Credit Cards - Independent interest rate and fees comparisons for New Zealand banks.

About guide2.co.nz : money

Find the latest money news and 'how to' guides on Guide2Money.

Ask our researchers your personal finance questions.

Your Questions. Independent Answers.