Market creeps lower

By AARON LIM - BusinessDay.co.nz | Monday, 06 October 2008

The New Zealand stock market continued to move lower by early afternoon, but on low trading volumes.

The NZX-50 index was down 56.922 points, or 1.84 per cent, to 3094.617 by early afternoon.  Trading volumes were low, with total value of trades at $18,556,129

Top-stock Telecom was down 5c to $2.84 in afternoon trading.

Contact Energy was down 21c to $7.40 and Fletcher Building fell 22c to $6.61.

Banking stocks continued their downward trend, with ANZ down 30c to $21.50, AMP shaving off 35c to $8.15, and Westpac down 45c to $26.90

In Australia, shares fell 1.8 per cent in early trading, as concerns over global growth prospects continued to weigh on the market.

The benchamark S&P/ASX 200 index fell 86.1 points to 4609.3 early in the session.

National Australia Bank was down 2.2 per cent to $25.57, with Macquarie Group falling 2.8 per cent to $38.00.

Commonwealth Bank of Australia was down 0.7 per cent to $44.70, with mining giant Rio Tinto down 2.6 per cent to $$86.61

Despite the $700 billion U.S. rescue package for stricken banks being passed into law over the weekend, investors feared the bailout would not be enough to avert a U.S. recession. A steep 159,000 drop in US payrolls reported last week overshadowed the bailout package and fuelled concerns about a slowdown in global economic growth as well.

U.S. stock index futures slid in early Asian trade on Monday as investors here reacted to dismal jobs figures released on Friday that greatly increased the risk of recession in the United States.

The S&P 500 stock index future was down 15.9 points at 1,092.90 , while the Dow Jones Industrial Average contract  fell 139 points, or 1.34 percent, to 10,229.

The Dow Jones industrial average fell 157.15 points, or 1.50 percent, to 10,325.70 on Friday, while the Standard & Poor's 500 Index slid 15.04 points, or 1.35 percent, to 1099.24. It was the first time the S&P closed below 1100 in almost four years.

The Nasdaq Composite Index was down 29.33 points, or 1.48 percent, at 1947.39.

 - with Reuters