The New Zealand sharemarket today outperformed offshore markets spooked by a 45 per cent fall in the share price of the fourth biggest US investment bank.
The benchmark NZSX-50 market closed down 32.522 points, or 0.963 per cent, at 3343.863. There were 23 rises and 62 falls and
turnover was worth $132 million.
Asian markets were down between 1 per cent and 2 per cent today after t he Dow Jones industrial average fell 2.42 per cent to 11,231.63 on concern about Lehman Brothers' ability to raise much-needed capital reignited fears about the US financial sector.
"New Zealand continues to outperform the general world markets," said Grant Williamson, partner at Hamilton Hindin Greene.
The stocks taking the pressure were the blue chips with Fletcher Building down 25c at 750.
"Foreigners were selling in blue chip stocks," he said.
Top stock Telecom continued its disappointing performance, dropping 4c to 303, its lowest level in more than 15-1/2 years.
Contact Energy was down 18c to 882 as it became accepted that the takeover of parent Origin Energy by BG Group of Origin was unlikely to proceed.
There wasn't much direction from the currency market and attention is turning to the Reserve Bank of New Zealand Monetary Policy Statement tomorrow.
"The market has pretty much priced in a quarter per cent cut in the cash rate tomorrow so there will be some disappointment if that doesn't occur," Mr Williamson said.
NZ Oil & Gas was down 1c to 154 as oil prices hit a five-month low.
Auckland Airport was down 1c at 204, Fisher & Paykel Healthcare was down 5c at 313 and Fisher & Paykel Appliances was down 7c at 179.
Infratil eased 1c to 219. Tower eased 1c to 207 and The Warehouse eased 3c to 320.
The Standard & Poor's 500 Index was down 3.4 per cent at 1224.64. The Nasdaq Composite Index was down 2.64 per cent at 2209.81.
- NZPA
