The New Zealand share market finished lower today as the world waited to see if a bailout of the United States financial sector will make it through the US political system.
Congress looked close to reaching a deal to approve a US$700 billion ($1.04 trillion) plan and President
George W Bush called an emergency meeting for Thursday to hammer out details.
US markets were unsettled as negotiations dragged on.
Mr Bush warned of a looming economic disaster if Congress failed to act swiftly and the details of the plan are still to be disclosed.
The benchmark NZSX-50 index closed down 21.964 points, or 0.674 per cent, at 3237.715, after rising 31.5 points yesterday when sentiment got a boost from news that investment guru Warren Buffett was investing US$5b in Goldman Sachs.
"Everyone is waiting for the US package to go through Congress," said Grant Williamson, partner at Hamilton Hindin Greene.
He said most investors had taken to the sidelines until the uncertainty was resolved.
"Until that is resolved volumes remain quite light," he said.
There were 18 rises and 53 falls on the market and shares worth $88.63 million traded.
There was little corporate news today and investors are also waiting to see how a capital raising by PGG Wrightson goes.
The company's shares remain suspended with an announcement on details expected before the market opens tomorrow. The company said today that the capital raising was completed.
Rakon closed down 4.08 per cent, or 10c, at 235 after businessman Peter Maire sold down his stake.
Telecom eased 5c to 279 and Fletcher Building 4c to 735. Contact rose 1c to 851.
Ryman fell 10c to 162 and Port of Tauranga rose 20c to 670.
SkyCity rose 4c to 366, SkyTV 5c to 455 and The Warehouse 3c to 320.
Fisher & Paykel Appliances was unchanged at 168 and the healthcare stock was up 2c at 339.
The Dow Jones industrial average ended down 0.27 per cent, at 10,825.17, and the Standard & Poor's 500 Index down 0.20 per cent at 1185.87.
The Nasdaq Composite Index clung to slender gains on hopes that technology spending would increase once a version of the bailout plan becomes law, lifting 0.11 per cent at 2155.68.
- NZPA
