The NZX opened down after poor trading on Wall St. File Photo
The sharemarket opened lower again today after Wall Street took another hit.
US stocks fell sharply after credit rating agency Moody's Investors Service cut bond insurer FGIC Corp's "AAA" rating, heightening concern that credit markets will destabilise further.
Stocks were already lower after US Federal Reserve chairman Ben
Bernanke said he sees investment banks taking more write-downs on losses from subprime mortgages.
Here, the benchmark NZSX-50 index was down 24 points, or 0.7 per cent, to 3527 at 10.25am. Only four stocks of 65 traded were up. There were 24 falls.
Market leader Telecom was down 5c to 400 while Fletcher Building, which yesterday recovered 16c from a big fall on Wednesday, was down 3c to 904 and No 3 stock Contact Energy was down 6c to 755.
Top-10 lines company Vector lost another 2c to 200 after it dropped 4c yesterday in response to concerns about the sale of its Wellington lines business and the impending refinancing of its debt.
High technology manufacturer Rakon, which yesterday took a 22c hit after lowering its forecast, fell another 10c to 280.
Another exporter, Pumpkin Patch, which shed 19c yesterday to a three-and-a-half year low ahead of its half year result next Wednesday was further punished, down 6c to 161. A year ago it was trading at 479.
Other losers in the top 50 included Michael Hill was down 7c to 104, Hallenstein Glassons, 10c to 385, Ryman, 4c to 167, Ebos 4c to 475, and Tower, 4c to 201.
Among the smaller stocks to lose, Comvita fell 5c to 200, Delegats 11c, to 201 and Horizon, 15c to 310.
In the US, the Dow Jones industrial average fell 176.23 points, or 1.40 per cent, to end at 12,376.01. The Standard & Poor's 500 Index fell 18.42 points, or 1.35 per cent, to 1348.79 and the Nasdaq Composite Index lost 41.39 points, or 1.74 per cent, to 2332.54.
- NZPA
