The New Zealand share market was again sideswiped by events offshore. The market opened firmly but turned down on more bad news from the US financial sector.
The benchmark NZSX-50 index closed down 50.131 points, or 1.548 per cent, at 3187.584 and the futures market indicates that Wall
Street will open lower.
Though New Zealand second quarter dross domestic product data was better than expected the news from offshore overshadowed it for the equities market.
Talks on a $700 billion rescue for the US financial system fell into chaos and US authorities closed Washington Mutual and sold its assets in America's biggest ever bank failure.
Asian share markets turned lower.
Turnover in the New Zealand market was light with $72.36 million worth of shares traded. There were 54 falls and 30 rises.
PGG Wrightson fell 27c to 183 for although the company got a difficult capital raising away the price of 180 a share was low.
"Inevitably the price in the market comes back toward that price," said Stephen Wright of ASB Securities.
"The market is just taking a cautious attitude yet again," he said of sentiment in light of the events offshore.
The lack of resolution of the bailout and the weakness in other Asian markets had influenced the New Zealand market on an otherwise quiet Friday.
Telecom eased 6c to 273, Fletcher Building fell 14c to 721 and Contact eased 10c to 841.
Fisher & Paykel Appliances was unchanged at 168 and the healthcare stock was down 9c at 291.
Sky TV eased 7c to 448 and Tower eased 1c to 180. Sanford rose 20c to 600. Tourism Holdings eased 4c to 126.
All three major US stocks indices had ended higher on Thursday, following a three-day losing streak.
The Dow Jones industrial average closed 196.89 points, or 1.82 per cent, higher at 11,022.06. The Standard & Poor's 500 Index was up 23.31 points, or 1.97 per cent, at 1209.18. The Nasdaq Composite Index was up 30.89 points, or 1.43 per cent, at 2186.57.
- NZPA
