KEY POINTS:
The New Zealand sharemarket stepped down again today as international markets continue to bounce around as investors try to work out just what sort of shape the US financial sector really is in.
A 50 basis point cut in US interest rates was dismissed as expected and worries about the US financial institutions continue to weigh on sentiment. The Australian and Japanese markets were weaker but managed to turn positive during the day.
"The Fed can do all they want but the problems are baked in the cake," said Jim Awad, chairman of WP Stewart Asset Management in New York.
The Dow Jones industrial average finished down 37.47 points, or 0.30 per cent, at 12,442.83.
The NZSX-50 index in New Zealand initially opened flat but by the end of the session was down 26.37 points, or 0.71 per cent, at 3670.64. Falls outnumbered rises by 66 to 41 among the 139 stocks traded. Trading was worth $121.88 million.
Top stock Telecom attracted attention not just because it was down but because it had slid below 400, closing down 2c at 398.
"I would say it is right on support levels at the moment. You wouldn't want to see it go too much under where it is currently," said Grant Williamson, partner at Hamilton Hindin Greene.
The decline came after Communications Minister David Cunliffe said he was still considering submissions on Telecom's amended separation plan and had not ruled out rejecting it outright.
Uncertainty about whether the company's separation plan would be accepted has caused investors to "hop out of the stock", Mr Williamson said.
The Warehouse was up 10c at 565 even after a decision allowing the Commerce Commission to challenge a court ruling allowing rival grocery firms freedom to bid. The stock was initially lower but recovered. Overall, investors are seen as being in for a long wait for the situation surrounding the stock to resolve.
Both the Fisher & Paykel stocks were down today and the fall was attributed to the impact of the high New Zealand dollar on exporters.
Fisher & Paykel Healthcare was down 7c at 303 and the appliances stock was down 7c at 280.
New Zealand Oil and Gas rose 1c to 110 after it reported strong quarterly cashflows and said the Tui production well was operating better than expected.
Contact Energy was up 4c to 762, Fletcher Building gained 1c to 1007, and Mainfreight gained 1c to 596.
Port of Tauranga was down 5c at 620, Freightways was down 2c at 340 and TrustPower declined 7c to 770.
Tourism Holdings was unchanged at 196 and Hallenstein Glasson was unchanged at 362.
Tenon, the former Fletcher Challenge Forests, was up 10c at 135.
Infratil was down 5c at 253. Vector eased 4c to 211. Sanford rose 4c to 395 and SkyCity rose 1c to 437.
- NZPA