11 Nov 2008

New Zealand market closes down

8:37 pm on 11 November 2008

The NZX top 50 index closed down 38 points, or 1.3%, to 2799 on turnover of $33 million on Tuesday.

Auckland Airport fell 3 cents to $1.76, Telecom closed unchanged at $2.41 and Contact Energy fell 16c to $7.25, as did Fletcher Building, which closed at $5.60.

Tourism Holdings fell 2c to 88c after revealing it expected to post a first-half trading loss. The Warehouse fell 4c to $3.85, while Freightways fell 3c to $3.04

The dollar was buying 58.79 US cents, 87.04 Australian cents, 37.41 pence, 57.71 yen and 0.4601 euro. The Trade Weighted Index was 59.39.

Across the Tasman, the Australian share market closed 3.5% lower, sharply reversing its gains of Monday, as renewed fears of global recession and a domestic slowdown weighed on the local bourse.

The S&P/ASX200 index was 146.9 points, or 3.58%, lower at 3960.9, while the All Ordinaries lost 138.2 points, or 3.4%, to 3921.8.

On the Sydney Futures Exchange, the December share price index contract was 96 points lower to 4002 on a volume of 30,227 contracts.

In Japan, the Nikkei-225 stock index fell 1.28% at the opening on Tuesday. The index lost 116.14 points to 8965.29 in the first minute of trading.

Stocks in the United States fell on Monday, stifling earlier enthusiasm for a Chinese stimulus plan.

The financial sector fell after Barclays Capital analysts said they expect Goldman Sachs to post a quarterly loss for the first time in its history. Shares in Goldman lost more than 8%.

Shares in General Motors fell to their lowest in 62 years after Deutsche Bank lowered its equity value on the automaker to zero.

In addition, the cost of rescuing American International Group Inc jumped to $US150 billion after a smaller bailout failed to stabilise the insurance company.

Stocks worldwide initially rose after China approved a government spending package worth four trillion yen ($US586 billion) and said it would adopt a "moderately easy" monetary policy.

But the Dow Jones industrial average fell 73.27 points, or 0.82%, to 8870.54.

Standard & Poor's 500 Index dropped 11.78 points, or 1.27%, to 919.21. The Nasdaq Composite Index was down 30.66 points, or 1.86%, at 1,616.74.

European shares rose on Monday after the announcement of the economic stimulus plan for China.

The FTSEurofirst 300 index of top European shares closed up 0.9% at 922.48 points. It was the eighth day of gains in the last 10 for the index.

Metal prices surged after China approved a huge rise in new government spending and the G20 group of nations pledged to take all necessary steps to put financial markets back on their feet.

China announced a 4 trillion yuan ($US586 billion) spending package on Sunday as well as a shift to "moderately easy" monetary policy.