KEY POINTS:
The sharemarket lost 0.6 per cent as it followed other markets lower, although top stock Telecom held its ground.
The benchmark NZSX-50 index closed down 25.2 points at 3928.40, on turnover totalling $93.4 million.
The index had returned to near-record highs in October, recovering virtually all its losses from August, but has since steadily lost ground and is currently hovering above five-month lows.
"The market's continued on its trend of drifting slightly lower on relatively light volume," said Bryon Burke of ABN Amro Craigs.
Telecom closed steady at 424 on healthy volume, and Sky TV rose 2c to 576, but the remaining blue chip stocks were negative.
Fletcher Building lost 12c to 1107, Contact Energy was down 3c at 829, Auckland Airport fell 5c to 273, Fisher & Paykel Healthcare lost 5c to 346, F&P Appliances was down 5c at 325, and Sky City shed 9c to 433.
"With the Dow failing to rally off its fall, this negative sentiment surrounds our leading stocks, which often come under selling pressure," Mr Burke said.
With little in the way of corporate news, the market remained in holiday mode with lighter than normal activity, partly due to uncertainty on world markets, he said.
The Warehouse continued to be punished for yesterday's flat outlook, although the stock's main driver remained court action over a possible takeover bid.
Having closed down just 2c yesterday, the retailer tumbled 18c, or 3 per cent, to 560.
Air New Zealand was down 2c at 186, Freightways was down 3c at 362, Infratil was down 2c at 279, Rakon lost 11c to 369, Tower shed 8c to 225, and Hallenstein Glasson was down 2c at 401.
Among the handful to post gains on the top-50, Mainfreight was up 2c at 644, Guinness Peat Group rose a cent to 166, Ryman Healthcare was up 2c at 199, PGG Wrightson rose 5c to 220, and seafood exporter Sanford was up 10c at 400.
NZX, which said that a record $5.5 billion was raised on its markets last year, was steady at 880.
Australia's benchmark index was down 0.5 per cent at 6130, and Japan's Nikkei share average was also 0.5 per cent lower, having earlier fallen 1 per cent to compound a 1.3 per cent loss yesterday.
- NZPA