RTTNews - The New Zealand share market opened flat on Tuesday, riding a mixed overnight lead from Wall Street where U.S. stocks finished on both sides of the unchanged line in a session that did not receive any economic data to drive the stocks.
The benchmark NZX 50 index fell marginally by 0.47 points or 0.02% to 3,067.20 shortly after the market opened for the day, while the broader NZX All Capital index slipped 2.24 points or 0.07% to 3,118.12.
The New Zealand share market joined the global move to higher ground on Monday. The benchmark NZX-50 index advanced 32.7 points or 1.02 percent to 3,067. Trading volume was reported by the New Zealand Stock Exchange at 47.4 million shares valued at NZ$110.7 million. Advancing stocks outnumbered decliners 61 to 21 with 31 unchanged.
Overseas, U.S. stocks moved back to the downside over the course of the trading session on Monday, ending the day nearly unchanged. Though the stocks saw some early strength, the major averages closed on opposite sides of the unchanged mark.
On Monday morning, traders in the U.S. reacted to comments from a number of central bankers over the weekend at the Federal Reserve conference in Jackson Hole, Wyoming, indicating that interest rates are likely to remain fixed for some time despite some signs of economic stabilization.
At the conference, Federal Reserve Chairman Ben Bernanke said, Economic activity appears to be leveling out, both in the United States and abroad. Bernanke also noted that the prospects for a return to growth in the near term appear good.
However, the optimism was partly offset by comments from economist Nouriel Roubini, who said that he sees a big risk of a double recession in an article for the Financial Times. Roubini, who predicted the magnitude of the recent financial crisis, stated that the global economy might bottom out in the second half of the year and that the economies in the U.S and other European countries might witness anemic or below trend growth for at least a couple of years.
The pullback by the markets was also partly due to comments from Sun Trust (SIT) CEO James Wells, who said that financial institutions are likely to incur further losses amid the dismal condition of the commercial real estate market.
The major U.S. averages saw choppy movement in late session dealing, resulting in a mixed close to kick off the week. While the Dow closed up by 3.32 points or less than a tenth of a percent at 9,509.28, the Nasdaq slipped by 2.92 points or 0.1 percent to 2,017.98 and the S&P 500 fell by 0.56 or 0.1 percent to 1,025.57.
Crude oil edged higher on Monday amid hopes a global economic recovery will boost energy demand. Oil hit a 10-month intraday high before easing. Light sweet crude for October closed at $74.37 per barrel, up 48 cents on the session. Oil hit as high as $74.81 earlier but fell as the dollar rebounded against other majors.
On the currency front, the New Zealand dollar was buying US68.53c by about 8 am on Tuesday, little changed from its level at 5pm on Monday. The kiwi had touched a high of US68.86 during the night.
In the economic calender for Tuesday, Reserve Bank of New Zealand releases its Inflation Expectation for the third quarter at 03:00 AM GMT on Wednesday.
In the early trading on the New Zealand stock market on Tuesday, market leader Telecom remained unchanged, as second ranked Contact Energy eased 0.48% and Fletcher Building, the third best stock, slipped 0.26%.
In the retail sector, Hallenstein Glasson surged 2.52%, as jewelry retailer Michael Hill International fell 2.78%, Pumpkin Patch gave up 2.17%, and Warehouse dropped 1.22%. Among energy stocks, TrustPower added 0.54%, as Vector jumped by 1.46%.
Among the dual listed issues, AMP, Australia and NZ Banking Corp, APN News & Media, Lion Nathan, Telstra and Westpac Bank remained unchanged on Tuesday morning.
Among other notable stocks, Infratil gained 0.58%, Methven surged 3.33%, Nuplex eased 0.45% and Sky Network Television added 0.44%, as Mainfreight, Sky City , Steel & Tube Holdings remained unchanged. While Fisher & Paykel Appliances collected 1.25%, Fisher & Paykel Healthcare posted a gain of 0.61%.
The major gainers in the day's early trading included-- Cavalier by 0.80%, NZ Farming Systems by 4.44%, Port of Tauranga by 0.15%, Rakon by 0.71%, Ryman Healthcare by 1.07%, Sanford by 0.59% and Tower by 1.72%.
The early losers on Tuesday included--Goodman Property Trust by 2.00%, New Zealand Oil & Gas by 1.81%, New Zealand Refining Company by 0.91%, NZX Limited by 0.52%, PGG Wrightson by 2.25% and Pike River Coal by 8.77%.
For comments and feedback: contact email@example.com