NZ stocks: Top stocks pull NZSE to two-year low

The sharemarket nosedived to its lowest level in almost two years yesterday, brought down by weakness among the top stocks and falling US markets.

The NZSE-40 Capital Index dropped 27.94 points to 1951.88 - its lowest level since December 1998.

Turnover totalled $142.5 million, with falls outnumbering rises almost two to one - 68 to 35 - among the 149 stocks traded.

'The markets have been obviously weaker across the board, " said Salomon Smith Barney broker Craig Robins. "The currency continues to be under pressure so there's still negative sentiment. It's having a negative impact on an already weak equity market."

Market leader Telecom dropped 24c to 571 on trade of nine million shares worth $52.7 million.

"Telecom's weakness had more do with the international decline in the value of telco stocks and the softening Nasdaq than it did with the results of the Government's telecommunications inquiry," Mr Robins said.

Fletcher Challenge stocks all plummeted after the company conceded it wouldn't be restructured until next year.

Fletcher Challenge had planned to have everything sorted out before the end of the year.

But, the company said it was still striving to have the key decisions in place for its remaining Energy, Forests and Building divisions before the end of the year. Paper was sold this year to Norske Skog.

Energy slid 27c to 790, the first time it has gone under 800 since the last week of August, while Building came off 9c to 230 and Forests was down 2c at 78.

Fisher & Paykel and Tower each fell 10c, to 715 and 490 respectively, and The Warehouse was 9c down at 566.

Sky TV was 5c down at 340 and Contact dropped 3c to 259, although INL bucked the trend and went up 5c to 350.

Baycorp was 5c down at 1165. Lion Nathan was 1c down at 484, but its investment Montana was up 4c at 314.

- NZPA