The sharemarket weakened as Air NZ shares dived and a lack of news and softening economic data dented sentiment.
The market was down for a fifth consecutive day, with the NZX-50 losing 1.14 per cent, or 48.76 points, to 4203.27. Falls heavily outnumbered rises 89 to 16.
AirNZ shares tumbled 25c to $2.65 as nearly 46 million shares worth about $124 million changed hands.
The fall was prompted by Qantas selling its 4.2 per cent stake, a leftover from the two airlines' failed plans for a strategic alliance.
Qantas sold the shares for $2.70, all to institutional investors.
Brokers said the selloff was expected, after Qantas converted its redeemable shares to ordinary ones earlier in the year.
Forsyth Barr broker David Price said the airline's story was still a strong one.
"Clearly there was a big line of stock that's been placed; it will take some time to digest but I think you'll see it recover."
Air NZ aside, Price said volumes had been quite light and sentiment flat.
"You get a deal done at a discount like that, people have to find the funds somewhere, so that always had the market heading into negative territory before we started. But a combination of a few jittery comments offshore about credit markets, combined with a weak consumer confidence number, high interest rate, high currency - these things have taken their toll."
Telecom fell 6c to $4.46, Fletcher Building was down 7c to $12.43, Fisher & Paykel Healthcare lost 6c to $3.26, and SkyCity was off 8c to $5.08.
Others among the sea of red were Freightways down 15c to $3.95, Infratil down 6c to $3.18, and Auckland International Airport down 3c to $3.18.
Tourism Holdings fell 6c to $2.58 after suitor MFS Living and Leisure reiterated its $2.80 offer was final.
* In Australia, the S&P/ASX200 index tumbled 124.4 points, or almost 2 per cent, to 6184.20. (Share table C6)
