The sharemarket was in holiday mode yesterday as many players took advantage of Waitangi Day today to take a long weekend.
The NZSE-40 capital index closed down 23.86 points, or 1.19 per cent, at 1987.07, while the NZSE-10 shed 16.05 points to 878.05.
Turnover was just 34.81 million stocks valued at $34
million.
"It almost felt like the market participants had taken the view it was going to be a long weekend - it was a very low-volume day," said ABN Amro head of institutional sales Nigel Scott.
"I think the markets are still trying to ascertain just where the rate cuts [in the US] do impact - where the earnings impact is for overseas countries, and how the lower activity levels will impact on countries like New Zealand."
Mr Scott said local investors were also in consolidatory mode as the annual reporting season loomed.
"INL, Sky, Telecom and a whole raft of companies are about to start reporting and people are getting ready for that," he said.
Telecom, whose chief executive, Theresa Gattung, has a lot on her plate at present, continued its rollercoaster run of late, crashing 23c to $5.47.
Solid support last week saw the stock rally as high as $5.90, but uncertainty in the Australian telco market caused investors to vote with their feet yesterday. The company topped the leader board of local stocks, with $4.98 million worth of shares changing hands.
Australian analysts said Australia's telcos faced another bleak year with fierce competition, pricey spectrum auctions and ongoing capital expenditure concerns weighing on the sector.
Fellow market leader Fletcher Energy closed unchanged at $9 after its United States associate Capstone Turbines fell overnight. Capstone was down 1.25USc at $US41 ($93).
Fletcher Building fell 1c to $2.09, Carter Holt Harvey lost 1c to $1.58, and The Warehouse shed 16c to $5.26.
On the up side, INL gained 7c to $3.80, Sky TV was up 3c at $3.70, Montana added 3c to $4.05 and Advantage Group rose 8c to $1.38.
Mr Scott said yesterday's weak market was not an indication of how NZ was performing overall. "Volumes were so light you can't read a lot into it. Markets overseas have weakened recently and we have generally been performing pretty well [by comparison]."
- NZPA
