NZ market feels global woes

By AARON LIM - BusinessDay.co.nz | Tuesday, 07 October 2008

The New Zealand stock market opened at a three year low today, down over 2.6 per cent, as it took its lead from widespread falls on Wall Street and global markets overnight.

After shedding 103 points yesterday, the benchmark NZX 50 was down 81.007 points to 2967 in early trading. The index last fell below the 3000 mark in April 2005.

Telecom started the day down 9c to $2.70.

Contact Energy was down 16c to $7.24 and Fletcher Building fell 6.27c to $6.27.

Banking stocks continued their downward trend, with ANZ down 79c to $20.16, and Westpac down 100c to $25.00.

Globally,European shares posted their worst day on record and the Dow slipped below 10,000 points for the first time since October 2004 as markets reeled on news of the growing toll from the credit crisis and widespread fears of a looming global recession.

The US stock market cut almost half its losses in the last hour of the session, as traders speculated the sell-off might trigger a coordinated global response to thaw credit markets.

 The Dow, however, still closed down at a four-year low.  

The Dow had shed more than 700 points and the benchmark S&P 500 index was on the verge of sliding below the 1,000 mark before losses were trimmed in late trade.

 The Dow Jones industrial average closed down 369.88 points, or 3.58 percent, at 9,955.50. The Standard & Poor's 500 Index shed 42.38 points, or 3.86 percent, at 1,056.85. The Nasdaq Composite Index fell 84.43 points, or 4.34 percent, at 1,862.96.

 It was the S&P 500's lowest close since December 2003.

 For the year to date, the Dow is down about 25 percent, the S&P 500 is down 28 percent and the Nasdaq is down 29.8 percent.

 - with Reuters