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The New Zealand sharemarket plunged on Monday after another
meltdown on global share markets.
The decrease is thought to be a reaction to last week's bail out by
the US Federal Reserve of America's fifth largest investment
bank.
Bear Sterns was on the brink of collapse when the Fed took action
to prevent widespread panic in the financial markets.
A report in the Wall Street Journal says that J P Morgan Chase is
close to acquiring the Wall Street firm.
In early trading on Monday the NZX-50 was down by about 1.5% with
further, but less dramatic, downward movement as the day
progressed. The Dow Jones Index had fell by 1.6% on Friday.
Early on Fisher and Paykel Appliances had fallen six cents to
$2.45, Telecom had also shed six cents to $2.45 and Auckland
International Airport was down five cents to $2.35.
In London, the FTSE 100 share index ended down 1.1%.
The drop in the NZX has produced calls for lower interest rates.
