KEY POINTS:
A heavy fall on the Australian market was moderated somewhat in New Zealand after Wall St indexes tumbled more than 1 per cent on Friday.
The NZSX-50 benchmark index fell 1.14 per cent or 46.03 points to 3962.62 on total turnover of $129 million. Falls outnumbered rises 77
to 24.
Brokers said the market continued to ease on moderate to low volume, as offshore volatility and flat local conditions kept investors away.
"You're in the face of strong currency, high interest rates and you've still got global uncertainty," Nigel Scott of ABN Amro Craigs said.
The index was led down by Telecom, which succumbed to profit-taking after holding up well in recent sessions, falling 7c today to 431.
Other blue-chips were also down, including Contact, off 10c to 828, and Fletcher Building, off 4c to 1126.
Other moves included F&P Healthcare up 3c to 331, Sky City flat at 461, Sky TV down 7c to 567, Hallenstein Glasson down 10c to 375 on thin trade, and Tourism Holdings down 12c to 215, also on low volume.
Auckland Airport fell 6c to 274 after the company's board urged shareholders to reject a partial takeover bid from CPPIB.
"It's very difficult to get 40 per cent," said one broker, noting the share price was well below the offer of $3.655 per share, even though it was above the independent valuation range.
Dual-listed stocks were hammered, including Lion Nathan, down 70c to 1000 although it was ex-div by 21c; ANZ fell 100c to 3030, and Westpac down 110c to 3230.
But Tower rose 4c to 229, as the company announced just before the market closed that former Hanover Finance CEO Sam Stubbs would take over its investment business.
Mining and oil exploration investor Widespread Portfolios also advised its shareholders not to sell as it had become aware of "certain developments". Its shares were up 0.4c to 1.8c.
In Australia, shares fell 3 per cent as property trusts declined on refinancing troubles at Centro Properties Group, while financial stocks slipped due to an uncertain outlook for global credit markets.
"That's two days in a row that they've been aggressively sold and that's been one market which has held up against the global intra-market movements," Mr Scott said of the Australian bourse.
US stocks fell on Friday on concerns that surging inflation may prevent the Federal Reserve from lowering interest rates enough to pull the economy out of the grip of a housing and credit crisis.
The three major indexes tumbled more than 1 per cent each, and posted their worst week since November 11, after a report showing a jump in the consumer price index in November.
- NZPA