The New Zealand sharemarket took a small step lower today, even as The Warehouse removed an impediment to takeover activity.
The emergence of a potential corporate situation did little to shift the focus from the market's awful global backdrop.
Though some Asian markets recovered today as central banks
around the world cut interest rates and the Australian market pulled off its lows.
The Reserve Bank did not cut rates but was expected to move on October 23.
The NZSX-50 index closed down 3.915 points, or 0.133 per cent, at 2944.395. Volume was worth $126.5 million, which is healthy.
Bryon Burke of ABN Amro Craigs said a down day was a good day when the drop was so small.
"It used to be you needed the market to go up for it to be a good day," he said.
The Warehouse rose 40c, or 12.94 per cent, to 349 after signalling the closure of its Extra stores.
Brokers said a takeover premium had been put back into the stock because the experiment with grocery retailing was the main reason the Commerce Commission would not allow supermarket owners Foodstuffs and Woolworths to bid for The Warehouse.
Mr Burke said people were dipping their toe in the water in stocks that had been sold heavily.
"If you don't have any debt or any need to raise it you can sit there and continue to produce electricity if you are Contact Energy or keep people gambling if you are SkyCity," he said.
Telecom was down 2c to 265, Contact Energy was down 10c to 730 and Fletcher Building rose 3c to 639.
Fisher & Paykel Healthcare was unchanged at 300 and the appliances stock was down 1c at 149.
Infratil was unchanged at 199. Mainfreight fell 13c at 575 and Port of Tauranga fell 7c to 628.
SkyCity eased 2c to 312 and Cavalier eased 5c to 235.
US stocks fell for a sixth straight session on Wednesday, as the co-ordinated worldwide cut in interest rates failed to alleviate fears about a global recession.
The Dow Jones industrial average fell 189.01 points, or 2.00 per cent, to 9258.10, while the Standard & Poor's 500 Index dropped 11.29 points, or 1.13 per cent, to 984.94. The Nasdaq Composite Index was down 14.55 points, or 0.83 per cent, at 1740.33.
- NZPA
