The New Zealand sharemarket slumped 4.818 per cent today, after United States equities had their worst day since the 1987 crash.
The benchmark NZSX-50 index closed down 139.954 points at 2764.688. Turnover was worth $99.84 million.
Today's sharp fall came as bleak US economic data fed worries that
all the efforts to unlock credit markets may not stave off a severe recession around the world.
The Dow Jones industrial average slid 7.9 per cent to 8577.91, while the Standard & Poor's 500 Index tumbled 9 per cent to 907.84. The Nasdaq Composite Index sank 8.5 per cent to 1628.33.
Brokers said the US market had managed one of its worst and best days in the same week as the market had risen 11 per cent on Monday.
The volatility of global markets was frightening buyers, ensuring the market remained a sellers' market.
There was nowhere to hide for leaders. Telecom shares dropped to their lowest level in more than 16 years, losing 21c, or 8.61 per cent, to 223.
Contact Energy was down 22c to 713 and Fletcher Building was down 37c to 586.
Losers included dual-listed banking stocks with Westpac down 166 to 2409 and ANZ Banking Group down 103 to 1950.
Other big losers were NZ Refining Co, down 35c to 615, Nuplex 50c to 530, Mainfreight 17c to 523, Cavalier Corp 20c to 240, and Freightways 15c to 320.
Tower was down 9c to 136 and The Warehouse was up 3c at 357 after Woolworths withdrew its court challenge to a Commerce Commission decision preventing it bidding for The Warehouse.
Sky City lost 8c to 299 and Sky TV lost 6c to 394.
Barry Lindsay, research manager at First NZ Capital, said investors were waiting to see when markets responded to unprecedented help globally.
The oil price, which was a concern of investors, had come down and analysts have priced in slower economic growth into prices.
Still, he said it was understandable that investors were sitting on their hands.
- NZPA
