9 Sep 2008

NZ market flat at close

9:12 pm on 9 September 2008

The New Zealand share market was flat on Tuesday, up just 2 points to 3376 on turnover of $127 million.

At the close of trade, Telecom was down 8 cents at $3.07, Fletcher Building rose 6c to $7.75 and Contact Enegery was up 29c to $9.

PGG Wrightson slid 5c to $2.50 after shareholders approved its plans to pay $220 million for a 50% financial stake in meat company Silver Fern Farms on Monday.

The Warehouse was unchanged at $3.23 ahead of its annual results release on Friday.

The Australian share market closed more than 1.5% lower on Tuesday, weighed down by falls in resource and energy stocks.

At the 1615 AEST close, the benchmark S&P/ASX200 was down 87.4 points, or 1.72% to 4980.1, while the broader All Ordinaries shed 84.4 points, or 1.65% to 5041.9.

At 1615 AEST on the Sydney Futures Exchange, the September share price index contract was 93 points lower at 4990, on a volume of 27,291 contracts.

BHP Billiton dropped $A1.55, or 4.12%, to A$36.05, Rio Tinto lost $A2.75, or 2.49%, to $A107.50 and Fortescue fell A60c, or 8.45% to $A6.50.

The market got off to a poor start despite a positive lead from Wall Street overnight, with the Dow Jones industrial average adding 289.78 points, or 2.58% to close at 11,510.74.

The spot price of gold was lower and at 1623 AEST was trading at $US795.95 an ounce, down $US17.25 on Monday's local close of $US813.20 an ounce.

In Japan, share prices were down 1.77% at the close on Tuesday as investors took profits a day after global markets soared on a US government bailout of ailing mortgage companies, dealers said.

Banking shares, some of which surged on Monday, tumbled on concerns that a weak global economy will still take a toll on financial institutions, despite the US mortgage bailout, dealers said.

The Tokyo Stock Exchange's benchmark Nikkei-225 index fell 223.81 points to close at 12,400.65. The broader Topix index of all first-section shares closed down 24.82 points or 2.04% to 1,191.59.