The New Zealand sharemarket failed to hold onto early gains and opened the second half of the year with an agonising 1 per cent fall, as government bond yields slumped.
The S&P/NZX 50 Index reached a lunchtime high of 10,897.11 points but began sliding midway through the afternoon and crumbled in the last half hour matching session.
The index closed at 10,753.16, down 115.54 points or 1.06 per cent. After one of the rockiest first half year's trading in years, the index is now down 17.5 per cent.
In the United States, the S&P 500 had its worst half-year since 1970, falling 20.58 per cent; the Dow Jones Industrial Average, down 15.31 per cent, had its largest first-half drop since 1962; and the Nasdaq Composite suffered its largest percentage drop ever with a fall of 29.51 per cent.
On the local market, trading was again light with 35.77 million shares worth $95.13 million changing hands, and there were 59 gainers and 85 decliners. The market is expected to be quiet again on Monday as the US markets are closed for the July 4 Independence Day celebration and Australia begins its school holidays.
Shane Solly, portfolio manager with Harbour Asset Management, said the local market's little rally was snuffed out by tax-loss selling in Australia.
"What we are seeing now is economic data and activity coming in a lot cooler than what it was, and government bond yields are pulling back," he said.
The New Zealand 10 Year Government Bond yield fell 1.42 per cent to 3.7 per cent, after sitting at 4.29 per cent on June 15.
The ANZ-Roy Morgan Consumer Confidence Index was down 1.8 points in June.
ANZ said that's a touch above its record low, but still deep within the "something to worry about" zone.
The market was led down by leading stocks Fisher and Paykel Healthcare, falling 43c or 2.15 per cent to $19.55; Ebos Group decreasing $1.20 or 3.08 per cent to $37.81; Mainfreight declining 90c to $69; Fletcher Building down 9c to $4.95; and a2 Milk shedding 9c or 1.83 per cent to $4.84.
Auckland International Airport held its head up, increasing 8c to $7.26; and Air New Zealand gained 1.5c or 2.63 per cent to 58.5c.
The energy stocks had a mixed day. Manawa Energy was up 10c to $6.07; Vector increased 5c to $4.22; Genesis gained 6c or 2.26 per cent to $2.71; Contact was down 21c or 2.88 per cent to $7.07; Mercury shed 17c or 3.01 per cent to $5.48; and Meridian declined 7.5c to $4.605.
Winton Land improved 6c or 2.19 per cent to $2.80; Ventia Services Group rose 7c or 2.75 per cent to $2.62; and The Colonial Motor Company was up 24c or 2.52 per cent to $9.75.
New Zealand Oil & Gas was up 2.5c or 5.68 per cent to 46.5c after reporting the latest well in the Indonesian Mahato field has been drilled and is producing 1000 barrels of oil per day. NZOG's subsidiary Cue Energy Resources has a 12.15 per cent interest in Mahato.
Among the retirement village operators, Ryman Healthcare was down 15c to $8.75; Oceania Healthcare decreased 2c or 2.15 per cent to 91c; and Arvida Group declined 3c or 2.03 per cent to $1.45.
Pushpay Holdings came under heavy selling pressure, falling 6c or 4.72 per cent to $1.21 on trade worth 5.22m as investors await any possible takeover news.
Other decliners were Precinct Properties down 4c or 2;.92 per cent to $1.33; Radius Residential Care decreasing 1.5c or 3.75 per cent to 38.5c; Rua Bioscience falling 2.5c or 7.58 per cent to 30.5; and Chatham Rock Phosphate down 2c or 5.41 per cent to 35c.
Retailers The Warehouse Group was down 8c or 2.37 per cent to $3.30; Hallenstein Glasson shed 12c or 2.19 per cent to $5.35; and Briscoe Group declined 10c or 1.89 per cent to $5.20.
Tourism Holdings and Apollo Tourism & Leisure intend to sell some assets to get their transtasman merger over the line with New Zealand Commerce Commission and Australian Consumer and Competition Commission. Apollo is offering to sell a significant part of its four to six berth motorhome fleet to Jucy Rentals. Tourism Holdings share price was up 2c to $2.34.
AFT Pharmaceuticals, unchanged at $3.61, told the market its needs to provide more information to the US Food and Drug Administration for registration of its intravenous Maxigesic pain relief medicine.
David Page has resigned as chief executive of NZ Automotive Investments, effective from September 30, and its share price was unchanged at 69c.