KEY POINTS:
The sharemarket lost much of its gains from Friday, as investors await Wednesday's interest rate decision in the US.
The NZSX-50 index closed down 0.8 per cent or 35.44 points to 4057.49 on turnover worth $105 million.
On Friday the market gained 49.4 points, or 1.2 per cent, after almost a week of declines after a downgrade from international share index compilers MSCI.
ABN Amro equities adviser Nigel Scott said the market was enduring a generally downward trend, with people favouring bonds and currencies for yield or sitting on the sidelines.
"After a long period of growth, the market's just absorbing a lot of the information out there in the wide world," he said.
"The finance company activity in New Zealand obviously continues to weigh on investors. A lot of them will now just sit on the sidelines."
He gave Contact as an example. It failed to fire today from news that lake levels are headed for a dry summer, a signal that spot power prices will increase. Contact fell 12c to 835.
Other leading stocks included Telecom, down 6c to 438, and Fletcher Building down 30c to 1139.
One of the few positive stocks today was Fisher & Paykel Heathcare up 6c to 335. Its twin F&P Appliances lost a cent to 339. Air NZ also gained, up 3c to 185 and takeover target Abano Healthcare rose 5c to 505.
The Warehouse eased 8c to 656 as takeover speculation continued over an overturned High Court decision favouring two interested parties.
Currency-sensitive fishing company Sanford fell 13c to 397, while exporter Pumpkin Patch fell 5c to 260. Sky City fell 6c to 485, and Mainfreight fell 12c to 709.
On turnover of $43 million there were 17 rises and 22 falls among the 65 stocks traded.
- NZPA