15 Sep 2008

Lehman uncertainty hits NZ 50 index

9:01 pm on 15 September 2008

Global equity markets have been shaken by uncertainty about the future of United States investment bank Lehman Brothers. The benchmark NZ 50 index closed down 41 points to 3319 on turnover of $80 million.

Telecom finished down 6c to $2.91 while Contact Energy was down 1c to $9 and Fletcher Building was down 28c to $7.37

The Warehouse was up 2c to $3.30 after reporting a 17% underlying increase in profit to $80.9 million on Friday, better than earlier forecasts.

Sky City Entertainment Group was up 2c to $3.65 after announcing new appointments to the board on Friday.

The dollar was buying 66.91 US cents, 81.42 Australian, 37.10 pence, 70.92 yen and 0.4647 euro. The Trade Weighted Index was 63.18.

The Australian sharemarket dropped more than 1.5% after heavy losses from the financial sector as Lehman Brothers filed for bankruptcy.

The S&P/ASX200 index was down 86.1 points, or 1.76%, to 4817.7, while the All Ordinaries lost 82.1 points, or 1.66%. to 4875.

On the Sydney Futures Exchange, the September share price index contract was 99 points lower at 4826, on a volume of 104,884 contracts.