New Zealand share prices closed 1.17 percent lower on Thursday in line with sharp falls on Wall Street and other world markets amid fears of rising interest rates, dealers said.
They said those fears, sparked by ongoing high oil prices feeding inflation, were compounded by signs of an economic slowdown in the United States.
The benchmark NZSX-50 index fell 40.42 points to 3,406.00 on turnover of 127 million dollars (88.6 million US). Of 156 stocks traded, 104 fell and just 12 rose.
On Tuesday, three US regional Federal Reserve bank presidents warned the central bank is likely to continue to raise short-term interest rates to keep inflationary pressures in the economy at bay.
However, Grant Williamson of Hamilton, Hindin, Greene said he was confident the weakness in the local market would not last.
"I think it's just a healthy correction and at some stage, if prices fall too much further, we will start to see the bargain hunters come into the marketplace," Williamson said.
Market heavyweight Telecom fell two cents to 5.92 dollars and take-over target Carter Holt was also down two cents at 2.50.
Recent market star Fletcher Building fell as low as 7.85 dollars but recovered some ground to close down four cents at 7.98.
Casino operator Sky City dropped nine cents to 4.78 dollars. Williamson attributed this to broader market weakness rather than the company's announcement it was interested in the Australian hotel and gaming business, Taverner Group. Jeweller Michael Hill dropped 10 cents to 7.50 dollars despite quarterly sales figures which showed same store revenue up in all its major markets.
Power company Vector lost seven cents to 3.09 dollars after announcing it may spend up to 200 million dollars to meet growing gas demand in the Auckland region.
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