Telecom bucks trend with gain

New Zealand shares followed the negative lead from the United States market yesterday, which fell sharply overnight when several leading banks and investment banks were downgraded by ratings agency Moodys.

The NZX 50 ended down 0.3 per cent or 10.19 points to 3399.19. Within the index, 31 stocks fell, 15 rose and four were unchanged.

BT Funds Management portfolio manager Matt Goodson said local trading was light, and ‘‘ true to form in recent weeks’’ the market was significantly less volatile than global markets..

Telecom bucked the trend to gain 1.4 per cent to $2.46. ‘‘Its buyback has been active of late and one would assume it was active again yesterday,’’ Goodson said. ‘‘SkyCity was down 2 per cent on very light volume, to $3.40. New Zealand Oil & Gas has been very strong of late despite strong declines in oil prices. It was down 2.5 per cent to 77c.’’

The leading decliner was Nuplex, down 3.8 per cent to $2.52. Carpet maker Cavalier slipped 3.7 per cent to $1.56. Kathmandu was down 3.45 per cent to $1.40. Australian shares finished almost one per cent lower due to widespread concerns about global growth.

The S&P/ASX 200 lost 39.4 points, or 0.96 per cent, at 4048.2, while the All Ordinaries was down 39.9 points, or 0.97 per cent, at 4093.8.

Energy stocks were punished and Australia’s biggest miners led the move south. BHP Billiton was down A68c at A$31.52, Rio Tinto was A88c lower at A$56.02. In Tokyo, sentiment was hit by weak manufacturing data out of Europe and China.

The Nikkei shed 0.29 per cent, or 25.72 points, to 8798.35, while the Topix lost 0.4 per cent, or 3.04 points, to 750.92.

In New York, stocks posted the worst day in three weeks on expectations of more economic weakness.

The Dow fell 251.35 points, or 1.96 per cent, at 12,573.04. The S&P 500 was down 30.19 points, or 2.23 per cent, at 1,325.50. The Nasdaq lost 71.36 points, or 2.44 per cent, at 2859.09.

In London, the FTSE 100 dropped back on falls in heavyweight commodity stocks, ending down 55.93 points, or 1.0 per cent, at 5566.36 points.