KEY POINTS:
The sharemarket slid soon after opening today, with top stock Telecom taking an early 10c fall to 455.
About 15 minutes after the stock exchange started trading at 10am, the benchmark NZSX-50 index was down 21.69 points, or 0.51 per cent, to 4215.16, following a 1.8 point easing yesterday.
Shares in energy distribution company Vector were down 3c early to 263 following today's announcement of the resignation of chief executive Mark Franklin, to seek a change and new challenges, after 4-1/2 years in the top job.
New Zealand Oil & Gas was up 1c to 125 early after advising the market subscriptions for its Pike River Coal initial public offer, which closed yesterday, had substantially exceeded the minimum 65 million shares on offer.
NZOG shares had added 8c yesterday, with other positive developments for the company including first production soon at the Taranaki Tui oil field in which it has a 12.5 per cent stake, exploration about to start at nearby Hector and oil prices near record levels.
Among stocks to fall early were Contact Energy, down 5c to 900, Fletcher Building down 4c to 1214, Fisher & Paykel Healthcare down 2c to 325, Freightways off 3c to 410, Mainfreight down 3c to 739, Sky City down 2c to 493, and Tower down 5c to 243.
The few early risers included Auckland International Airport up 5c to 330, Pumpkin Patch up 2c to 350, and The Warehouse up 1c to 601.
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In the United States, stocks slid overnight as the subprime mortgage crisis escalated, undermining banking shares, while Home Depot Inc and other housing-related companies lowered their outlooks.
Standard & Poor's agitated financial markets when it said it may cut ratings on US$12 billion ($15.6 billion) of subprime-related debt on forecasts of more delinquent and defaulted US home loans.
Just before the close, Moody's Investors Service said it cut ratings on 399 mortgage-backed securities and may cut ratings on another 32, affecting US$5.2 billion in debt. Moody's said the downgrades reflect higher-than-expected delinquencies in the underlying home loans.
Shares of investment banks and mortgage companies were especially hard hit while US Treasury bonds benefited from the flow of funds out of riskier assets. The S&P index of financial shares fell 2.2 per cent, its worst one-day performance since mid-March.
The Dow Jones industrial average tumbled 1.09 per cent to end at 13,501.70. The Standard & Poor's 500 Index slid 1.42 per cent to finish at 1510.12. The Nasdaq Composite Index lost 1.16 per cent to close at 2639.16.
The S&P 500 and the Nasdaq had their biggest one-day percentage losses since June 7, while the Dow's drop was its worst since June 22.
- NZPA