A 13c gain in Telecom to $5.85 provided the sharemarket's only shield against a much sharper downturn yesterday.
The NZSE-40 index fell 5.04 points, or 0.25 per cent, to 2037.81.
"In the absence of Telecom's 13c rise, our market would probably have been down 15 points or so," said JB Were's Peter
Stokes.
The market appeared to be suffering from a spot of post-takeover blues following Fletcher Energy's departure, he said.
"When you have a market that lacks direction and you haven't got that X-factor like the Fletcher Energy money feeding in ... a directionless market tends to drift down."
Telecom was buoyed by market talk that it may be next in line for a takeover by Singapore Telecom after its purchase of Australia's No 2 telco, Cable & Wireless Optus.
About $55 million worth of Telecom shares changed hands, making up just over half of the market's $97 million total turnover.
Stocks dragging the market down included Carter Holt Harvey, down 4c to $1.79, Auckland Airport, 2c to $3.50, Frucor, 3c to $2.10, and The Warehouse, 13c to $5.85.
Air New Zealand, under chief executive Gary Toomey, took a battering after rival Qantas warned that its full-year earnings would be "significantly impacted" by a deterioration in trading conditions in Australia in the past month.
Air NZ A shares closed down 10c at $1.15, and the B shares shed 19c to $1.42.
The Australian market dominance of Qantas and Air NZ-owned Ansett Australia has been shattered by the start-up of several discount airlines, including Sir Richard Branson's Virgin Blue and Impulse Air.
"It is a pretty crowded, competitive market in Australia, and that is obviously feeding through to Air New Zealand's operations as well," Mr Stokes said.
"Clearly the next six to 12 months is a period of uncertainty.
"You have got to think that somewhere in the Australian market this is all going to come to a head at the expense of one of the cut-price airlines."
Ports of Auckland and Port of Tauranga ended down after Tauranga said shipping company Fesco New Zealand Express Line had opted to use its port and Auckland land-based facilities. Its gain is competitor Auckland's loss.
Ports of Auckland shed 20c to $5.15 and Tauranga closed down 10c at $5.60.
On the upside, Fisher & Paykel gained 5c to $8.00 after taking a 20c beating on Tuesday, Contact closed up 3c at $2.95 and United Networks was up 5c at $8.95.
Rubicon topped turnover, easing 1c to 48c.
DB fell 4c to $5.16 after the negative publicity it received over the decision to move the Monteith's brewery to Auckland from the West Coast, and its subsequent backdown.
Westfield slid 15c to $3.75 on light turnover and Waste Management fell 17c to $3.73.
- NZPA
A 13c gain in Telecom to $5.85 provided the sharemarket's only shield against a much sharper downturn yesterday.
The NZSE-40 index fell 5.04 points, or 0.25 per cent, to 2037.81.
"In the absence of Telecom's 13c rise, our market would probably have been down 15 points or so," said JB Were's Peter
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