17 Mar 2010

Telecom shares continue slide

7:13 pm on 17 March 2010

Shares in Telecom touched new lows on Wednesday on fears that lower earnings will result in smaller dividend payments.

The stock fell to a record low of $2.13 just before midday, but recovered slightly in the afternoon to close down 3 cents to $2.14.

The share selloff was sparked after Telecom confirmed on Tuesday that the Government's rural broadband plan would hit its earnings by $168 millionover three years.

Grant Williamson, a director at sharerbroker Hamilton Hindin Greene, said retail investors were concerned that this factor, as well as recent XT failures, could result in smaller dividends.