KEY POINTS:
The New Zealand sharemarket plunged 4.724 per cent today against a backdrop of collapsing markets in Asia.
There is considerable trepidation about how Wall Street will trade tonight after an avalanche of selling took the Dow down 678.91 points, or 7.33 per cent, to 8579.19 on Thursday.
The NZSX-50 index fell 139.081 points, or 4.724 per cent, to 2805.314. Turnover was worth $98.36 million. There were only nine rises on the market and 94 falls.
Across Asia brokers asked how low can markets go with the Japanese market down more than 11 per cent, the Philippine market down 8.3 per cent and Hong Kong market down 7.7 per cent during New Zealand's trading day.
The Australian market was down 7.13 per cent late in the New Zealand day.
"The markets are working but people are just not buying things," said John Body, head of markets at ANZ.
In New Zealand investors asked how low the price of leading shares can go. The leaders bore the brunt of selling because they are the most liquid.
Telecom closed down 9c at 256. Fletcher Building plunged 8.29 per cent, or 53c, to 586.
"From our clients we are not seeing wholesale selling. Most people are grinning and bearing it," said James Smalley, client adviser for Hamilton Hindin Greene.
But investors were looking for excuses to sell. They were also looking for the a bottom in the market and not finding it.
Dow futures are indicating another fall in the US market but it is viewed as unreliable in the current volatile times.
"You know things are getting ridiculous when entire companies are being valued at the amount of cash they have," Mr Smalley said.
There was "capitulation" selling today as investors could no longer take the pain.
Quality stocks were not immune. Mainfreight tumbled 7.83 per cent, or 45c, to 530 and Freightways fell 4.61 per cent, or 14c, to 290.
Contact eased 10c to 720. GPG fell 5c to 99. Infratil fell 10c to 189.
Michael Hill International fell 6c, or 8.11 per cent, to 68.
NZOG fell 4c to 116. The Warehouse fell 9c to 340.
"Everyone is just trying to price in worst-case scenario for economies going forward," he said.
- NZPA
