The New Zealand sharemarket opened sharply lower after stocks plunged in the United States as concerns were reignited about the broader US financial sector.
Around 10.10am the benchmark NZSX-50 market was down 29.81 points, or 0.9 per cent, to 3346.57, having risen slightly yesterday.
Top stock Telecom continued
its disappointing performance, dropping 4c to 303, its lowest level in more than 15-1/2 years.
Among other top companies Contact Energy was down 30c to 870, reversing its 29c gain yesterday which happened on speculation that majority owner Origin Energy may increase its stake with the planned takeover by BG Group of Origin having become unlikely to proceed.
After the New Zealand market closed BG did admit defeat in its hostile bid.
Other stocks falling early included Fletcher Building, down 18c to 757, Cavalier Corporation slipped 4c to 291, Fisher & Paykel Appliances was down 3c to 183, and Hallenstein Glasson was down 3c to 297.
NZ Oil & Gas was down 5c to 150 as oil prices hit a five-month low, Nuplex lost 3c to 620, Rakon was down 3c to 280 and Ryman Healthcare was down 3c to 175.
Dual-listed ANZ Banking Group shed 76c, or 3.5 per cent, early to 2069.
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The plunge in US stocks happened as concern about No 4 US investment bank Lehman Brothers' ability to raise much-needed capital reignited fears about the broader financial sector.
Energy shares tumbled as oil prices fell more than US$3 ($4.55) a barrel, hit by news that Hurricane Ike would veer away from Gulf of Mexico production facilities.
The Dow Jones industrial average was down 2.42 per cent at 11,231.63. 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
