NZ shares hit 10-month low

Telecom struck another record low, and the New Zealand sharemarket hit a 10-month low today as it failed to shake off the effect of heavy losses on Wall Street.

The benchmark NZX-50 index closed down 1.4 per cent, or 41.16 points, at 2988.98, as it caught up with carnage on overseas markets after missing the damage due to yesterday's public holiday.

Telecom slid 5c, or 2.7 per cent, to 181 as the company continued struggling to rebuild its reputation and performance.

"It's been north of three years since it's had any real retail support, so in a market like this where you probably need most investors concentrating on a stock and looking for the opportunity, Telecom at this stage just doesn't come up on people's radar screen," said Nigel Scott of Craigs Investment Partners.

Contact Energy went against the trend, adding 3c to 578, while Fletcher Building shed 14c to 804, Auckland Airport lost 4c to 183, Sky City fell 3c to 287, Infratil was down a cent at 160 and Fisher & Paykel Appliances lost 3c to 52.

Jeweller Michael Hill fell 4c to 66 after announcing it was closing eight of its 17 stores in the United States, although it was still planning to open 15 stores elsewhere.

Along with Contact, the only top-50 stocks to post gains today were Hallenstein Glassons, up 4c at 340, and Vector, up a cent at 210.

The Warehouse fell 6c to 350, seafood exporter Sanford was down 14c at 415, Pumpkin Patch lost 6c to 204, and Mainfreight was down 10c at 615.

In the US, the S&P 500 fell to its lowest close in seven months, as industrials and technology shares fell and investors stayed on their heels after last week's disappointing payrolls figure.

Concerns about Europe's debt-laden economies also weighed on markets.

"I think the New Zealand market is showing nothing nearly as dramatic or as volatile as offshore environments at this point in time," Mr Scott said.

"We are certainly deemed as probably a bit of a sideshow, our economy and influences are viewed as steady versus what's going on in the global context."

- NZPA