KEY POINTS:
The sharemarket fell 0.6 per cent today, bolstered against larger losses offshore by Telecom's small decline.
The NZSX-50 benchmark index lost 21.72 points to close at 3690.0, after a bad steer from Wall Street which fell on fresh concerns about credit markets.
Turnover was $120.5 million.
"Our day was always going to be slightly weaker - I think it held up, being 21 points down was not a bad result and helped in a way by Telecom," said Stephen Wright of ASB Securities.
Telecom, which reports its half-year result on Friday, fell a cent to 410. Other blue chips were generally weaker, with Fletcher Building down 13c at 982, Contact Energy off 5c at 781, Fisher & Paykel Healthcare flat at 302, and F&P Appliances steady at 291.
Auckland International Airport lost 4c to 270 after a potential third bidder pulled out, and the board suggested interest for the Canada Pension Plan Investment Board takeover bid was dwindling.
The day's highlight was an improved profit forecast for Michael Hill International, which closed up 13c, or nearly 13 per cent, at 115. The jewellery retailer said it expected to post a first half profit up to 30 per cent higher than a year earlier.
Sky City fell 8c to 427, Sky TV lost 6c to 510, and Vector fell 2c to 206.
The Warehouse rose 5c to 590, Hallenstein Glasson was up 2c at 380, Freightways gained 2c to 336, and carpetmaker Cavalier jumped 10c on small volume to 270.
NZX also moved on light volume, down 14c to 781, Tower lost 2c to 214, Infratil was down 2c at 250, and Rakon lost 3c to 340.
Australia's S&P/ASX 200 was down 1.1 per cent after a weak start and a rate rise by the Reserve Bank of Australia, as expected, with the promise of more to come.
Japan's Nikkei share average was down 0.7 per cent.
Among dual-listed stocks, ANZ lost 20c to 3050, Westpac fell 70c to 2990, AMP was down 35c at 950, and Lion Nathan was unchanged.
Earlier in the US, stocks ended lower after brokerages downgraded banks and credit card companies on signs consumers are falling behind on debt payments, suggesting yet another pillar of the economy is shaky.
- NZPA