New Zealand shares followed world stock markets down in a sell-off triggered by increasing alarm over the global economic outlook and European bank liquidity, though brokers said losses here were not as big as elsewhere.
"It looks like investors have run for the door ahead of a data packed end
to the week and Monday's public holiday in the US. People's worst fears are starting to materialise - there simply isn't enough growth around to create jobs," said Ben Potter at IG Markets.
But Stuart Hardie, adviser at Craigs Investment Partners, said from a percentage point of view the local market weathered the storm fairly well.
The benchmark NZX-50 index closed down 18.981 points, or 0.635 per cent, at 2972.091. The index was down to its lowest level in 11 months. Turnover is worth $71.45 million. There were 21 rises and 64 falls among the 117 stocks traded.
"There is really no buying support at all," Mr Hardie said.
Yet amid the gloom diversified industrial company Skellerup issued a profit upgrade, describing its second-half trading period as excellent and its share price rose 5c to 68.
Cavalier rose 10c to 245 on light volume. It disclosed the impact of budget decisions on its accounts today. Port of Tauranga rose 5c to 665, again on light volume.
Among the leaders Fletcher Building fell 13c to 785, but Contact Energy was unchanged at 569 and Telecom was unchanged at 189.
Guinness Peat Group ended unchanged at 66 as investors continue to assess the implications of its boardroom meltdown.
Nuplex fell 11c to 281, Freightways lost 1c to 279, while Mainfreight was unchanged at 615.
Restaurant Brands dropped 2c to 230, Methven dropped 4c to 155, Trustpower lost 4c to 719, and APN News dropped 18c, or 6.9 per cent, to 243.
Air NZ fell 3c to 107 and Auckland Airport fell 1c to 187.
In the United States, investors fled the stock market, with the Standard & Poor's 500 Index tumbling to its lowest level in eight months in the sell-off.
All but one stock in the S&P 500 ended lower as escalating doubts about the stability of Europe's banks roiled markets once again.
The S&P 500 had tumbled below its 2010 intraday low of 1040.78 during the session, which analysts said could ignite further declines.
"Everybody is talking about 1040, that it is the do-all, end-all, blow it up, end of the world, blood on the streets level. The market crashes, the S&P goes to 900," said Marc Pado, US market strategist at Cantor Fitzgerald & Co in San Francisco.
The Dow Jones industrial average lost 2.7 per cent to 9870.30, the S&P 500 fell 3.1 per cent to end at 1041.24, and the Nasdaq Composite Index dropped 3.9 per cent to 2135.18.
- NZPA
New Zealand shares followed world stock markets down in a sell-off triggered by increasing alarm over the global economic outlook and European bank liquidity, though brokers said losses here were not as big as elsewhere.
"It looks like investors have run for the door ahead of a data packed end
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