NZ shares hit five-year low

The benchmark NZX 50 index extended losses in afternoon trading, falling below 2500 for the first time since January 2004, as gloom continues to stalk global financial markets.

By early afternoon, the NZX 50 index was down 48 points, or 1.9 percent to 2489, after falling 38.4 points yesterday.

Top stock Telecom was down 5c to $2.32, with Fletcher Building falling 10c to $5.30.

"We are following the general weakness in global markets today," ABN Amro Craigs senior dealer Bryon Burke said.

"We have low liquidity at the moment because the punters that were trying to pick the bottom in November when Lehman collapsed aren't there anymore."

Contact Energy was down 23c, at $5.80, after reporting a 31 percent fall in underlying half-year earnings after tax to $79.9 million.

Pumpkin Patch gained 7c to 90c after reporting a 7 percent fall in half-year net profit to $9.5m, on operating revenue up 3 percent to $211m.

Embattled manufacturing Fisher & Paykel Appliances dropped 4c to 51c, while Fisher & Paykel Healthcare was down 4c to $3.28

"Unfortunately stocks are the one asset you can sell at the moment, despite the low prices," Burke told Businessday.co.nz

Nuplex pared early losses to trade at $1.16, after sinking 20 percent to $1.00 when the market opened, after the company confirmed last week that it might not be in compliance with its banking covenants.

PGG Wrightson rose 4c to 69c, far from its 52 week high of $2.95.

Stock market operator NZX defied the gloom on the markets today, adding 5c to $5.45, after reporting a 17 percent lift in after tax earnings to $10.18 million for the year to December yesterday.

On Wall Street, The Dow Jones industrial average and the S&P 500 slumped to a 12-year low this morning on fading confidence that the US government will be able to stabilise the financial system.

- © Fairfax NZ News