Shares close at three-year low after shedding $1.6b

Telecom shares were again sold off on heavy turnover yesterday as the miserable week for the market's top listings ground to a close.

The shares closed 34c lower at a three-year low of $4.72 after trading as low as $4.67 during the session.

Adding to the company's regulatory woes was the news it had failed to find a buyer or partner for its limping AAPT Australian business. Compounding the pain was the fact that AAPT had also dragged on the company's third quarter result.

Turnover was again huge with 69 million shares worth $337 million changing hands.

The company has lost $1.6 billion in sharemarket value since a package of regulatory measures designed to increase competition in the high-speed internet service market was announced on Wednesday.

"It is disappointing," said First NZ Capital's Barry Lindsay. "Investors have been rattled by this and so it affects their whole attitude towards equity investments.

"It has shaken confidence overall and foreign investors are probably a bit less interested in what's going on here.

"I don't know whether the selling wave will carry on next week but you get the feeling that after two big days like this driving it down on big volumes as investors capitulate, there's probably more to come."