The New Zealand sharemarket slid 0.7 per cent yesterday, losing ground with other markets on growing sovereign debt fears.
The benchmark NZX-50 index closed down 25.19 points at 3439.98, having gained 12.5 points on Monday.
"We've held up better than most offshore markets, we just don't seem to have the
same volatility as most," said Hamilton Hindin Greene director Grant Williamson. "The market has performed reasonably well over a number of months so that's not surprising where we have a bit of a correction along the way - I think it's quite healthy for the markets that they don't get too carried away."
Reaction to a fine for Telecom was muted, the stock losing a cent to $2.05.5.
"I think investors are more focused on the separation and the Government broadband initiative, so there's very little focus on that side of things," Williamson said.
Among other blue chips, Fletcher Building slid 9c to $9.05 after a strong run because of its acquisition of Australian company Crane and the outlook for work in rebuilding Christchurch.
Contact Energy was down 2c at $5.80, Auckland Airport lost 3c to $2.19, SkyCity fell 5c to $3.39 and Infratil lost 3c to $1.81. Six top-50 stocks rose, including fish exporter Sanford, up 5c at $5.65, manufacturer Skellerup, up a cent at $1.30, and dual-listed Telstra, up 2c at $3.75.
There were gains in the property investment sector, with Kiwi Income Property Trust up 0.5c at $1.00.5 and Argosy Property a cent higher at 76c.
Argosy, formerly ING Property Trust, is planning to internalise its management with a $32.5 million payment to the trust's manager.
The manager's shareholder is ANZ Bank-owned OnePath. Another OnePath-related trust, Vital Healthcare Property Trust, was also considering internal management.
"I think it's good news for unit holders if they go down that track - internalising it makes the manager and the investor more aligned than having an external manager," Williamson said.
A threat by Standard & Poor's to cut its AAA rating of US government debt and renewed worries about Europe's debt crisis spurred the sell-off in major world stock markets.
The weakness started in European markets on fears that Greece will have to restructure its debt possibly as early as the summer.
- NZPA
