NZ stocks: Telecom gain limits market losses

The New Zealand sharemarket tumbled in early trading after heavy falls in overseas markets, but a solid performance from top stock Telecom limited further losses.

The benchmark NZSX-50 index closed down 33.94 points, or 1.3 per cent, at 2664.9, having lost 12.5 points yesterday.

Turnover was a light $60.3 million.

Markets in the United States and Europe lost more than 3 per cent overnight after weak results from Bank of America reignited concerns over the state of the banking industry and the US economy.

Across the Tasman, Australia's S&P/ASX 200 was down 2.5 per cent, while Japan's Nikkei share average lost 2 per cent.

In New Zealand, a 2-per cent gain for Telecom helped bolster the index, said Suzanne Kinnaird of Forsyth Barr.

Telecom, which closed up 5c at 255, has range-traded around current levels since mid-February, and retained some favour as an income stock, she said.

Contact Energy was down 14c at 564, Fletcher Building lost 27c to 628, Fisher & Paykel Appliances fell a cent to 44, Auckland Airport was down a cent at 169 and Sky TV fell 20c to 405.

Bucking the trend, F&P Healthcare gained 3c to 308.

Blue chip casino operator Sky City was placed in a trading halt this morning, having lost 8c to 285, ahead of news of a $214m capital raising. Sky City also said it was comfortable with current broker forecasts for annual profit of between $99m and $106m.

Among the bigger declines, Freightways lost 6c to 265, Hallenstein Glasson was down 9c at 238, Mainfreight lost 10c to 435, and Port of Tauranga was down 5c at 560.

Pike River Coal, down 2c at 78, said its $41m rights issue closed fully subscribed last week.

Ebos rose 10c to 490, NZ Refining was up 2c at 682, and ING Medical Properties rose 2c to 114.

Dual-listed stocks were weaker, with ANZ down 33c at 2100, Westpac off 60c at 2490, AMP down 20c at 650, and Lion Nathan down 3c at 1042.

Wall Street's tumble, on pessimism about company earnings and renewed economic worries, was broad-based and followed a six-week winning streak. It was the longest for the S&P 500 since 2007, while the Dow scored its biggest gain over the period since 1938.

- NZPA