KEY POINTS:
The sharemarket was still stinging from a brutal day on world equity markets on Friday, falling nearly one per cent.
Ignoring a one per cent rise on the Australian market and signs of recovery in Asia, the NZSX-50 index today closed down 0.9 per cent or 39.6 points to 4070.16 on a low total turnover of $97 million.
International markets have tentatively rebounded after major central banks injected US$400 billion in funds to ensure the US credit crisis did not crimp liquidity.
Forsyth Barr broker David Price said it was a little surprising how weak the local bourse was today.
"I think people today have been a bit more cautious. Last week we saw some opportune buying ...People are just biding their time and seeing what plays out offshore."
The market shed 1.2 per cent on Friday, and was prevented from plunging further by strong interest in Telecom.
But today the telco was down 7c to 428.
Brokers did not think it was related to today's news that Telecom would allow its biggest mobile rival, Vodaphone, to use its network , as rules tighten to create more competition in the mobile area.
Other blue-chips were also singing the blues, with Fletcher Building down 16c to 1208, Contact down 16c to 905, Sky City down 7c to 455 and Auckland Airport down 4c to 311.
Some currency-sensitive stocks appeared to react to the softening doll ar with Pumpkin Patch up 3c to 335, Michael Hill up 5c to 920, F&P Appliances up 3c to 346, and Sky TV - which buys in US dollars - down 12c to 548.
Others were down including Hallenstein Glasson down 10c to 460, and F&P Healthcare down 2c to 348.
Infratil fell 7c to 292, Mainfreight dropped 10c to 740, and Air NZ slid 4c to 240.
Bucking the trend was the Warehouse, up 4c to 611, Rakon up 7c to 475, Port of Tauranga up 10c to 690, and Australian banks Westpac up 39c to 2984c and ANZ up 37c to 3250.
Apple computer distributor Renaissance Corp rose 3c to 96 after the company said it was buying Natcoll, a private college of creative design.
AMP NZ Office Trust (ANZO) eased a cent to 125 after reporting a 14 per cent increase in full-year operating profit before tax to $41 million .
Falls outnumbered rises 68 to 35 on 146 stocks traded.
On Wall Street, the Dow Jones industrials closed out a tough week Friday, ending with just a 31-point, or 0.23 per cent loss for the day and managing to post a gain for the week.
- NZPA