New Zealand share prices closed down 1.45 percent on Tuesday, regaining some early losses after the Australian central bank cut interest rates by one percentage point, dealers said. There was speculation the New Zealand central bank could follow with a rate cut of the same magnitude when it meets later this month.
The benchmark NZX-50 index fell 44.19 points to 3,004.19 on light turnover worth 79.9 million dollars (50.6 million US). The benchmark index, which fell as low as 2.8 percent during the day, gradually regained some ground, especially after the Australian rate cut.
"Things are very cheap and there is probably some bargain-hunting," said Macquarie Equities investment advisor Brad Gordon. "I think you've probably seen a lead especially from Australia, and Dow futures are up, so that's probably providing a level of comfort that it may be time to enter back into the market." Market leader Telecom was down a cent at 2.78 dollars.
Discount retailer The Warehouse rose four cents to 3.10 dollars, Steel & Tube added a cent to 3.72, and second-ranked Contact Energy rose five cents to 7.45 dollars. Fletcher Building fell eight cents to 6.42 dollars, off its intraday low of 6.25, following news it was buying steel products company Fielders Australia for an undisclosed price. Freightways fell 12 cents to 3.05 dollars, Mainfreight lost 11 cents to 6.05, and Auckland Airport shed 10 cents to 1.80.