NZ stocks: Shares slide nearly 2pc

The New Zealand sharemarket failed to make up lost ground today after falling in early trading on the back of big declines in United States equities.

The benchmark NZSX-50 index ended the financial quarter down 51.6 points, or 1.95 per cent, at 2590.4, adding to yesterday's 11.5-point fall.

Trading was quiet and without excitement, while New Zealand investors remained at the mercy of offshore events, said Stephen Wright of ASB Securities.

Turnover totalled $112.4 million.

Trouble in the United States arose as two major US automakers took a step closer to potential bankruptcy, and a spate of European bank rescues heightened concerns over the financial system's health, putting the brakes on a recent upturn.

In New Zealand, Fletcher Building slid early and closed down 45c at 600, while top stock Telecom fell 4c to 228.

Contact Energy, which said it retained $49m in cash under its profit distribution plan, lost 14c to 572, adding to a 29c fall on light volumes yesterday.

Fisher & Paykel Healthcare was down 10c at 316, F&P Appliances was off a cent at 49, Sky City fell 6c to 281 and Sky TV lost 8c to 407.

The highlight among rising stocks was Pike River Coal, currently taking a roadshow to investors around the country, up 33c at 90.

Also on the rise was Port of Tauranga, up 6c at 515, Mainfreight, up 4c at 415, Hallenstein Glasson, 4c higher at 214, and Freightways, up 2c at 295.

Wood products and forest biotechnology investor Rubicon closed up 10c at 65 after a partial takeover offer of 70c per share from a series of associated investment funds referred to as Knott.

Tower fell 6c to 129, Trustpower lost 15c to 705, Rakon was down 9c at 121, NZX tumbled 23c to 670, and Nuplex was down 6c at 75.

Dual-listed stocks were mostly lower, with ANZ off 70c at 1905, Westpac down 10c at 2340, AMP off 22c at 565, and APN down 28c at 139.

Australia's S&P/ASX 200 Index was down 0.3 per cent at 3593, and Japan's Nikkei share average turned early losses into a 0.1 per cent rise.

Earlier on Wall Street, the Dow Jones industrial average lost 3.3 per cent, the Standard & Poor's 500 Index tumbled 3.5 per cent, and the Nasdaq Composite Index fell 2.8 per cent.

In the latest efforts in its campaign to shore up the economy and struggling corporations, the US administration forced out General Motors Corp's CEO, pushed Chrysler LLC toward a merger and threatened bankruptcy for both. The companies received a government bailout in December.

- NZPA