Trade Me soars on takeover bid; Fletcher sinks deeper
The S&P/NZX 50 index dropped 47.9 points, or 0.5 percent, to 8,672.40. Within the index, 29 stocks fell, 14 gained, and seven were unchanged. Turnover was $195.7 million.
Fletcher fell 4.7 percent to $4.70, the lowest level since mid-2004. That added to yesterday's 11 percent slump when Fletcher warned first-half earnings will fall 10 percent and noted tougher conditions in Australia. The stock was the most heavily traded, with 7.2 million shares changing hands today, compared to the 1.2 million 90-day average.
David Price, a broker at Forsyth Barr, said Fletcher struggled to capitalise on New Zealand's construction boom which is passed its peak and now faces a slower market across the Tasman also.
"What people are concerned about is that this is just the start of the downturn," he said.
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