By LIBBY MIDDLEBROOK
Shares struggled to develop some new year cheer yesterday despite a tiny bounce back in United States markets overnight.
The Top 40 Capital Index wilted another 1.3 per cent yesterday - wiping $2 billion off the value of shares so far this year - to close at 2125 from 2153 on Wednesday. Within the index 24 stocks fell and 14 increased in value.
Meanwhile, the Dow Jones Industrial Average closed up 1.1 per cent on Wednesday after falling 3.2 per cent on Tuesday due to concerns over rising interest rates in America.
Market analysts said an absence of both international and domestic investors in the New Zealand market contributed to declining share prices, along with expectations that the US Federal Reserve would raise interest rates by one percentage point this year.
"There really isn't the serious depth of players and when you get a scare in the US it puts further pressure on the market," said Rob Gwyther, a senior investment adviser for JB Were.
Australia closed at its lowest level for a month, the All-ords falling 0.7 per cent to 3030.10. But there was keen demand for dot.com stocks as thousands of retail investors used discount brokers to reshuffle their portfolios.
"It was certainly extremely busy on Wednesday, I think we had our busiest day ever ... and it has been pretty much like that today," Paul Rickard, director of Australia's largest online broker Commonweath Securities, told Reuters.
Dot.com stocks finished mixed but China internet hopeful New Tel soared 72 per cent to close at $A3.75.
Markets dawdle into new millennium
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