Telecom fell to a new record low of $2.07 yesterday before recovering to $2.13 after reporting a drop in earnings on a day when equity markets around the globe were in turmoil.
Investors tried to work out what happened when United States stocks plunged 9 per cent at one point before clawing back to be down just over 3 per cent at the close as the New Zealand market prepared to open.
Telecom reported a 39 per cent fall in third-quarter net profit to $97 million, as the company faced increased competition, impacts of the economic slowdown, regulatory issues and problems with its XT mobile network. The result was seen as disappointing but expected.
The benchmark NZX-50 index closed down 59.08 points, or 1.9 per cent, at 3158.85. Turnover was worth $123.5 million. There were 11 rises and 89 falls among the 119 stocks traded.
Grant Williamson, director at Hamilton, Hindin, Greene, said the 37 per cent fall in the price of Procter & Gamble shares in the US created panic, but there were reports of trading errors and Asian markets suggested a rebound in the US.
From the local market's open people were bargain hunting. "We were seeing a lot of people come in from the buy side," he said.
Among the leaders, Fletcher Building fell below $8.00 to close down 20c at $7.95 and Contact Energy fell 13c to $6.07. SkyCity closed down 5c at $3.00 but recovered from the low of $2.96. Briscoe Group shares were untraded after reporting a 7.4 per cent lift in first-quarter sales to $96.8 million. On Thursday they closed at $1.31. Postie Plus fell 3c to $0.35. The Warehouse fell 7c to $3.62. Kathmandu fell 7c to $2.13.
Fisher & Paykel Healthcare dropped 11c to $3.42, and the appliance stock fell 1c to $0.63. Air NZ fell 2c to $1.25. Allied Farmers was unchanged at 7c after saying the properties owned by Hanover Finance had fallen in value.
- NZPA
Market jitters brings out the bargain hunters
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