New Zealand shares have tumbled more than 2.6 per cent today after stocks in the United States plunged to 12-year lows overnight.
The benchmark NZX-50 index is down 65 points, or 2.6 per cent, to 2415, following a fall of 40.8 points yesterday.
Australian shares have followed the trend, with the All Ordinaries index down 2.2 per cent. Japanese stocks have also fallen today, with the benchmark Nikkei 225 stock average tumbling 178.64 points, or 2.45 per cent, to 7,101.51, extending further losses after a 3.8-per cent drop on Monday.
The broader Topix index also fell 2.52 per cent to 716.11.
Among leading New Zealand shares, Telecom is down 4c to $2.26, Contact Energy down 19c to $5.52, and Fletcher Building has slipped 12c to $5.11.
Stock falls were widespread when the market opened, with some of the larger losers including Trustpower down 14c to $7.00, Freightways down 15c to $2.80, NZX down 9c to $5.28, Fisher & Paykel Healthcare down 5c to $3.30, The Warehouse down 11c to $3.20, Sky City down 10c to $2.60.
Pike River Coal has fallen 6.25 percent, slumping 5 cents to 75 cents each, after announcing it was to raise $45 million through an issue of ordinary shares, with bonus options.
Wall Street shares dropped to fresh 12-year lows this morning, on heightened fears about the financial sector after a new bailout announced for insurance giant AIG and big troubles for Britain's HSBC.
The Dow Jones Industrial Average skidded 300.11 points (4.25 per cent) to 6,762.82 at the closing bell, its first close below 7,000 points since 1997.
The broad-market Standard & Poor's 500 index sank 34.28 points (4.66 per cent) to a preliminary close of 700.81, its lowest since late 1996.
The Nasdaq fell 54.99 points (3.99 per cent) to 1,322.85, capping a calamitous session for global markets.
The market extended losses after a dismal week in which the Dow fell to its lowest level since 1997 and the S&P dropped to its weakest since 1996.
Market action came after the US government unveiled a fresh aid plan of 30 billion dollars for AIG to stave off collapse of the ailing insurance company as it revealed massive new losses.
World markets were under pressure after British banking giant HSBC said it was seeking a huge capital injection to survive the global economic crisis.
HSBC revealed that it needs nearly 18 billion dollars of new capital to withstand the financial crisis and announced 6,100 job cuts after a profits collapse.
The bank reported a 70 per cent plunge in annual net profit last year and said it hoped to raise 12.5 billion pounds in a record British rights issue.
- NZPA, HERALD ONLINE
NZX down 2.6pc after Wall St hits 12-year low
Wall St broker Michael Sollitto is inconsolable as today's trades come through. Photo / AP
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