NZ stocks: US rally fails to inspire market

Wall Street's strong overnight rally failed to pull the New Zealand sharemarket out of this week's steep dive on the 18th anniversary of the 1987 sharemarket crash.

The benchmark NZSX-50 index, which yesterday shed 45.37 points, or 1.3 per cent, fell another 3.3 points today to 3298.18 in the first quarter of an hour of trading today.

In 1987, the local market dropped 14 per cent, not quite as dire as the 22 per cent plunge in the Dow Jones Industrial Average.

The local index dropped below 3300 for the first time in three months and it has fallen nearly 5 per cent from its September 4 peak of 3468.

Market leader Telecom was off 4c to 590 but No 2 stock Contact Energy recovered from its slide, rising 3c to 695. Similarly, Fletcher Building recouped 3c to 778.

Air NZ was steady on 107 after yesterday forecasting at 57 per cent plunge in operating earnings to $100 million. It is also mulling cutting 600 engineers from its Auckland workshop.

Infratil fell 4c to 355 and Sanford 5c to 420.

- NZPA