NZ shares fall 1.3% at open after global rout; Fletcher, Pumpkin Patch drop
Aug. 19 (BusinessDesk) – New Zealand shares fell 1.3% on the open, joining a global rout on speculation the U.S. is heading back into recession. Fletcher Building and Pumpkin Patch paced the slide.
The NZX 50 Index fell 42.89 points to 3243.56 after five minutes of trading. Telecom was the only gainer, after posting earnings that beat some estimates.
In the U.S., the Standard & Poor’s 500 Index dropped 4.5% and gold soared to a new record after U.S. Mid-Atlantic factory activity slumped to a 2 ½-year low and the Philadelphia Federal Reserve Bank Index of business activity fell to the lowest level since March 2009.
Fletcher Building slid 3% to $7.71 and Pumpkin Patch declined 3.9% to $1. APN News & Media, which wrote down the value of its New Zealand newspapers yesterday, declined 4.8%to $1. Telecom rose 1.5% to$2.64.