KEY POINTS:
The sharemarket gave in to selling pressure today, losing more than 1 per cent as many of the leading stocks plunged further than that.
The benchmark NZSX-50 index closed down 50.65 points, or 1.2 per cent, to 4134.77 after holding up relatively well yesterday compared with other regional markets. Turnover was a light $92 million.
"Probably a flow-on effect this week from weakness offshore, not last night but the night before," said Hamilton Hindin Greene partner Grant Williamson.
"I think investors are being quite cautious and just reducing their exposure to equities at the moment."
Top stock Telecom fell 11c, or 2.5 per cent, to 427, following a strong run this week on the back of the government regulator ruling rivals must pay a higher than previously indicated amount for local loop unbundling.
Fletcher Building lost 29c to 1134, also down 2.5 per cent. The stock has shed about 150 in less than a month.
"Expectation of a general slowdown in the housing sector, particularly in New Zealand, is certainly encouraging some investors to take profit on the stock," Mr Williamson said.
Contact Energy was down 2c at 905, Fisher & Paykel Healthcare fell 2c to 322, and Fisher & Paykel Appliances was down nearly 3 per cent at 334 following a rise in interim profit yesterday but an uncertain outlook.
Auckland Airport fell 7c to 309 on heavy volume as doubts mount about the Canadian Pension Fund partial bid at $3.6555 a share.
"A number of the larger shareholders in Auckland Airport (are) coming out and saying they're not in favour of the partial takeover from the Canadians, so that's adding a bit of fuel to the fire that it's unlikely to succeed," Mr Williamson said.
Another in-play stock, Sky City, was down 2c at 545, Sky TV lost a cent to 578, and Vector fell 3c to 221.
The Warehouse fell 6c to 522 after reporting that first quarter sales fell 1.7 per cent from a year earlier, with the company saying consumer electronics were particularly disappointing.
Steel & Tube was down 3c at 433 after flagging a fall of up to 27 per cent in first half net profit.
Air New Zealand was down 5c at 205, TrustPower shed 26c to 874, Infratil was down 6c at 292, PGG Wrightson lost 7c to 210, and Ryman was down 7c at 210.
Among the handful of top-50 stocks to rise, Rakon was up 5c at 520, Skellerup rose a cent to 106, Nuplex gained 5c to 740, Hallenstein Glasson jumped 7c to 446, and NZ Refining was up 15c at 775.
Shares in Abano Healthcare, under a partial 500-per-share takeover offer from Masthead Portfolios, fell 5c to 495.
Australia's benchmark index was up 0.5 per cent at 6555, while Japan's Nikkei average fell 0.3 per cent.
Earlier on Wall Street, blue chips closed lower but well off their session lows, helped by a recovery in beaten-down financial shares, but the Nasdaq ended deep in the red following troubling comments from Cisco on business spending.
- NZPA
