The sharemarket shed nearly half a per cent yesterday, but it was holding up relatively well against a much bleaker picture overseas.
The NZSE-40 capital index closed down 8.51 points, or 0.43 per cent, to 1981.04, on low volume worth $41.3 million.
But that was still an improvement on British and
United States markets. Britain's leading shares fell 4.8 per cent, one of their biggest percentage falls yet, reflecting sharp losses in the banking sector and the sickly US economic situation.
On Wall St, the Nasdaq Composite Index tumbled 3.63 per cent and the Dow Jones industrial average sank 2.63 per cent.
The declines were fuelled by disappointing manufacturing data which indicated that the nation's economy may be poised for a double-dip recession.
Back home, brokers noted that the sharemarket was no longer so broadly shackled to the fortunes of Wall St; the new driver appeared to be the local company reporting season.
"The pattern's been broken," said Peter Stokes of JBWere.
"Depending on order flow and individual company news flow, what you're getting is a bit of a mixed bag now.
"That allows quality stories to show their resilience and also the dynamics of the market will start to change over the next couple of weeks as we move into the reporting season."
Telecom led the market down, dominating about a quarter of the turnover and losing 4c to $4.71.
Other movers were Tower, down 13c to $4.02, and Carter Holt Harvey slipped 2c to $1.84.
Fellow forestry giant Fletcher Forests gained 1c to 23c in both head and preference shares as the battle between the company and dissenting shareholder Xylem intensified over the Central North Island Forest Partnership deal.
Tranz Rail shed 5c to $1.95, coming into line with a crossing of a million shares, which set a new low for the embattled company.
There was little reaction to Air NZ's new budget fare structure, with the stock rising 1c to 65c on low trade.
Other moves included Baycorp, down 8c to $4.12, and Contact, back a cent to $3.81, but retailers did better with Briscoe up 4c to $2.38 and the Warehouse up 5c to $7.15.
All up there were 56 falls and 32 rises on 120 stocks traded.
* The New Zealand dollar rallied late in the day after a rash of early selling, but dealers warned lack of support could see it slip back over the weekend.
The kiwi ended up at 46.54USc, not too far from its close of 46.42USc on Thursday.
"The stock market's not looking too good, US not looking too good, world growth, commodity currencies not feeling too well, dollar-yen shooting up and aussie's popped through the figure again but collapsed again at 53.20USc - who knows?" said one local dealer.
- NZPA
The sharemarket shed nearly half a per cent yesterday, but it was holding up relatively well against a much bleaker picture overseas.
The NZSE-40 capital index closed down 8.51 points, or 0.43 per cent, to 1981.04, on low volume worth $41.3 million.
But that was still an improvement on British and
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