Investors deserted Telecom yesterday, forcing the shares down to a record low of $2.18 by mid-afternoon.
The company's shares went ex-dividend yesterday and the shares promptly dropped by 14c as investors bailed out, Craigs Investment Partners broker Chris Timms said.
"Having the dividend gave the company some momentum but once it was paid there was no short-term catalyst for the company.
It is two months before we get a profit update from them," he said.
Telecom was no longer New Zealand's largest listed company, with a market capitalisation yesterday of $4.15 billion.
Fletcher Building, with a market capitalisation of $4.8 billion, tops the NZX rankings.
Contact, with a market capitalisation of $3.7 billion, is the third-largest listed company.
Telecom shares need to rise to $2.50 before it can reclaim top place.
It was light trading on Telecom shares yesterday with about seven million changing hands.
Mr Timms said that was well down on last week's trading of up to 27 million on one day and two days of 19 million and one of 11 million.
Telecom has been plagued by four XT mobile phone network outages since December.
Mr Timms said those outages, plus Vodafone's aggressive marketing, and generally negative reactions from market commentators, had helped turn investor sentiment against Telecom.
