The sharemarket closed at 1974.64 yesterday - below 2000 points for the first time since May and on the back of sliding US computer company Intel, which suffered one of the biggest wipeouts in history.
Investors will nervously await the opening of the US stockmarkets - but Telecom has already been
hard hit, returning to its June 1996 low to close down 20c at 585, John Cobb of JB Were said.
Intel, the world's largest maker of microchips, announced a worse than expected sales report, plummeting 21 per cent during an hour's trade after the markets officially closed.
The decline represents a $US77 billion ($191 billion) drop in Intel's market value - one of the biggest wipeouts in history. At yesterday's local close, the company had a market capitalisation of $US412.8 billion.
Other high tech stocks including computer makers and semiconductors were also pummelled.
In New Zealand, Mr Cobb said the tone of the sharemarket had been nervous.
"All eyes are on the US, and the Nasdaq's been rocky for a couple of weeks," he said.
"There was general weakness across the board. It was a day devoid of any great news, and it was more a day of sentiment," he said. "The current account was in line with expectations."
Telecom's saviours did not step in to rescue it from the clutches of sub-$6 lows yesterday as they did on Thursday, when it lifted from 594c to close at 605c.
"It took a bit of a battering." Telstra instalments closed down 20c at 380, and Telstra head shares were down 10c at 800.
Total market turnover was $98.21 million on 28.17 million shares traded, of which Telecom comprised one-third at $33.31 million, on 5.6 million shares traded.
There were 76 falls and 37 rises on 150 stocks traded.
Among the few to rise were Bendon, 2c at 177, Eventures, 3c at 46, Nuplex, 5c to 295 and Southern Capital, 7c to 85.
Biotech research and development company Genesis listed on the NZSE at a 248c premium to its 600c issue price. It closed well off the high at 649c.
On the down side, Baycorp sank 65c to 1100, Fletcher Building, 10c to 240, and Frucor 15c at 220.
Lion Nathan was down 10c at 480, Tower, 14c at 506 and Waste Management, 20c at 410.
Advantage and Commsoft were also hit hard.
- NZPA
