Market down 3.38 pc

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

Despite finishing the day down 3.38 per cent, losses today on the New Zealand sharemarket were on light trading volumes.

The benchmark NZX 50 index finished the day down 103.16 points at 3048.377. Trading volumes were low, with total value of trades at $55,549,313.

Leading blue chip Telecom finished the day 10c down at $2.79, with Fletcher Building falling 33c to $6.50.

Contact Energy was down 21c to $7.40, and Fisher and Paykel Healthcare 7c to $2.95.

Banking and finance stocks continued to be hit hard, with ANZ down 85c to $20.95, and Westpac falling 135c to $26.00.

AMP ended the day 75c lower at $7.75.

The New Zealand Treasury's report today on the state of the economy ahead of the election added to the gloom.

Treasury said the economic outlook had deteriorated badly since the May budget and this meant reducing its revenue forecasts and increasing its predictions of costs.

Speaking at the release of the Treasury update, Finance Minister Michael Cullen said the scale of international turmoil was unprecedented.

"What we thought we knew even five months ago has been overtaken by events," Dr Cullen said.

"New Zealand is expected to feel the effects of the financial crisis principally through the tighter availability and increased costs of credit, but also through a fall in business and consumer confidence, falling asset values and lower demand and prices for our exports."

Markets in the Asia Pacific region also continued their downward slide, with Australian stocks hitting a three year low, and the Nikkei average in Japan reaching a four year low.

The benchmark S&P/ASX 200 index was at 4562, down 132 points, or 2.9 per cent in afternoon trading.

In Japan, the Nikkei fell 3.6 per cent to 10,544, a low not seen since May 2004.

The MSCI index of Asia-Pacific stocks outside Japan slid 2.1 per cent, reaching its lowest level since June 2006.

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.

-with Reuters