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NZ sharemarket falls quickly in early trade


The New Zealand sharemarket fell quickly in early trade after stocks in the United States plunged on worries about Japan's nuclear crisis.

NZPA
Thu, 17 Mar 2011

The New Zealand sharemarket fell quickly in early trade after stocks in the United States plunged on worries about Japan's nuclear crisis.

Around 10.20am, the benchmark NZX-50 index was down 20 points, or 0.6 percent, to 3306.8, after yesterday gaining 12.7 points amid bargain hunting.

Telecom lost 2c to 197 early, Fletcher Building dropped 6c to 322, and Contact Energy gave up 6c to 576.

Sky TV was down 9c to 536 early, Sky City lost 6c to 322, Mainfreight fell 5c to 870, NZ Refining Co was down 5c to 500, Steel&Tube fell 4c to 248, and Port of Tauranga lost 3c to 774.

Among a small number of shares to rise early, outdoor clothing and equipment company Kathmandu was up 5c to 199 after reporting a 28.4 percent lift in half year earnings before interest and tax. Children's clothing retailer Pumpkin Patch added 2c to 128.

In the United States, major indexes lost around 2 percent in a volatile session as investors feared Japan's nuclear crisis could worsen.

Phil Flynn, senior market analyst with PFG Best in Chicago, said markets were trading "headline to headline, so I'm telling people not to overcommit to markets at this time".

Komal Sri-Kumar, who helps manage $US116 billion as chief global strategist at TCW Group Inc in Los Angeles said: "The trading volume suggests a lot of the trade is due to panic, and soon buyers will realize there wasn't much basis for the move."

The Dow Jones industrial average was down 2 percent at 11,613.30, the Standard&Poor's 500 Index was down 2 percent at 1256.88, and the Nasdaq Composite Index was down 1.9 percent at 2616.82.

NZPA
Thu, 17 Mar 2011
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NZ sharemarket falls quickly in early trade
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