KEY POINTS:
The New Zealand share market sank to its lowest level in five years today after the United States market tumbled to a 6-1/2 year low on Friday.
Investors here are focused on corporate debt levels while globally the worry is about lenders, although Australian shares rallied from lows today on speculation the US Government may acquire 40 per cent of Citigroup.
The benchmark NZSX-50 index closed down 38.394 points, or 1.49 per cent, at 2538.286. There were 16 rises and 61 falls among the 107 shares traded. Turnover was worth just $64m.
"There is just no one on the buy side," said Stuart Hardie, investment adviser at ABN Amro Craigs said.
The moves offshore markets had investors running for the hills.
"There is no good corporate news out there at the moment," he said.
He said investors were focusing on debt levels.
Fisher & Paykel Appliances fell another 4c to 55 and Nuplex fell 20c to 125 but PGG Wrightson rose 6c to 65.
Stock exchange operator NZX was down 20c to 540, on low volume, despite reporting a 17 per cent rise in full year net profit to $10.2 million.
After an initial 4c lift, Sky City Entertainment Group shares closed unchanged at 272, having reported a slightly lower underlying half-year net profit of $55.6m.
Fletcher Building was down 5c early to 540, Contact Energy was down 5c to 605 and Telecom was down 1c to 237.
Other stocks to fall included Port of Tauranga, down 25c to 535, TrustPower down 10c to 715 and SkyTV down 10c to 385.
Fisher & Paykel Healthcare was down 4c at 332.
Sanford fell 5c to 525.
Hallenstein Glassons rose 6c to 222, Lion Nathan rose 15c to 1120 and Ebos rose 5c to 445.
Cavalier was down 22c to 150 after reporting last week.
The fall in US stocks on Friday (local time) came amid fears the government may be forced to nationalise some big banks.
Uncertainty about how Washington will rescue beleaguered banks persisted even as the White House issued its most direct statement yet on banks, saying it supported a privately held banking system.
The S&P 500 had plunged close to a 12-year low before the White House statement.
The Dow Jones industrial average fell 1.3 per cent to close at 7365.67, the Standard & Poor's 500 Index ended down 1.1 per cent at 770.05, and the Nasdaq Composite Index dipped 0.11 per cent to 1441.23.
For the week, the Dow fell 6.2 per cent; the S&P 500 slid 6.9 per cent; and the Nasdaq tumbled 6.1 per cent.
Investors view the stabilisation of the banking sector as crucial for the economy to avert further deterioration, with both businesses and consumer lending still constrained.
- NZPA
