NZX follows Wall St lower

MICHAEL FOREMAN
Last updated 14:25 11/04/2014

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The New Zealand sharemarket is down 1 per cent in today after large falls on Wall Street overnight.

The benchmark NZX 50 Index was down 56.11 points to 5059.381 in early afternoon trade.

Shares in accounting software company Xero fell nearly 10 per cent in early trading but recovered to be down 6.6 per cent at $30.91 early this afternoon.

Greg Fraser, senior equity analyst at Mint Asset Management, said the local sharemarket was following a big selloff in the United States last night.

"The stock that has copped most of the flak is Xero, but it's really just investors reacting to what's happened in the US," he said.

"A similar thing has happened as the markets opened in Australia. It's really no catastrophe."

TRS Investments, which plans to merge with Kim Dotcom's Mega cloud-based service provider, suffered the largest percentage fall in its share price this morning, down 25 per cent to trade at 0.03 cents.

Amphibious boat manufacturer Sealegs Corporation shed 10.34 per cent of its value to trade at 13c.

Bucking the downward trend, New Talisman Gold Mines lifted 9.09 per cent to trade at 12c.

Troubled Apple distributor Renaissance Corporation, which is divesting its assets, gained 6.67 per cent to trade at 13c.

In the United States, investors dumped shares of biotechnology and internet companies over worries they were overvalued.

The technology-specific Nasdaq index suffered its biggest daily fall since 2011.

Weak economic performance in China, which reported a 6.6 per cent drop in exports and an 11.3 per cent fall in imports in March, added to the bearish market mood.

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- Fairfax Media

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