KEY POINTS:
The New Zealand sharemarket slid half a per cent today following a sharp fall in US stocks, but resisted declines of around 3 per cent in other regional markets.
Having risen 70 points yesterday, the benchmark NZSX-50 index fell 20.17 points to 4185.42. Turnover was a hefty $259 million, of which $113 million was in Telecom.
"The market opened up pretty weak, and there were concerns that it could be an ugly day," said Macquarie Equities NZ investment director Arthur Lim.
However, positive news about Telecom and Auckland Airport yesterday and Fisher & Paykel Appliances today, helped bolster the market, he said.
"The Australian market, which is the one that we draw most comparison with, is down 3 per cent following the Dow Jones' fall of 2.64 per cent - our market's 20-point fall or 0.5 per cent is actually very, very respectable," Mr Lim said.
Top stock Telecom reversed early weakness to close 4c higher at 438, building on yesterday's 14c rise after a ruling that rivals must pay a higher than previously indicated amount for local loop unbundling.
"I think it is indicating that the market is becoming much more comfortable with the regulatory regime, which represents one of the single biggest risks to Telecom, and the announcement yesterday indicates a much more pragmatic approach to the regulatory regime," Mr Lim said.
In contrast, Fletcher Building fell 9c to 1163, Contact Energy was down 13c at 907, and Vector lost 5c to 224.
Auckland Airport failed to build on yesterday's strong showing, losing 5c to 316. It had risen 30c after the Canada Pension Plan Investment Board said it would be making a fresh bid for a stake in the airport.
F&P Appliances rose 7c to 344 after posting a 16.6 per cent rise in first half net profit, on the back of strong sales and lower costs.
F&P Healthcare was up a cent at 324, Sky City was flat at 547, and Sky TV rose 5c to 579.
The few stocks outside the top-10 to rise were jeweller Michael Hill, up 15c at 1050, retirement village operator Ryman, up 2c at 217, Tourism Holdings, up 3c at 237, fish exporter Sanford, up 2c at 440, and dual-listed APN News & Media, up 2c at 618.
Among the biggest declines, Nuplex fell 13c to 735, Rakon shed 13c to 515, The Warehouse was down 7c at 528, Hallenstein Glasson lost 11c to 439, and Freightways was 9c lower at 373.
Small cap labour hire company Allied Workforce rose a cent to 110 after reporting a 5.8 per cent increase in half year net profit to $918,000.
Dual-listed stocks were hit hardest, with ANZ down 64c at 3481, Westpac down 70c at 3530, and Lion Nathan 30c lower at 1070.
Australia's benchmark ASX/S&P 200 Index was down 2.7 per cent at 6512, while Japan's Nikkei average fell 2.5 per cent.
Earlier on Wall Street, the sharp fall in US stocks came in a broad market rout as skittishness over renewed credit market turmoil heightened worries about the economy and corporate earnings.
The Standard & Poor's 500 Index fell 2.94 per cent, while the Nasdaq Composite closed down 2.70 per cent.
- NZPA
