The New Zealand stock market opened lower on Wednesday, taking cues from the Wall Street where U.S. stocks closed lower overnight on concerns about upcoming corporate earnings reports.
The benchmark NZX 50 index was down 20.22 points or 0.77% to 2,592.24 shortly after the market opened for the day, while the broader NZX All Capital Index slipped 19.91 points or 0.75% to 2,639.44.
New Zealand's share market declined on Tuesday, wiping out the gains of the previous session. The benchmark NZX-50 index posted a loss of 20.97 points or 0.8 percent to finish at 2,612.47. The New Zealand Stock Exchange listed trading volume at 52.5 million shares valued at NZ$110.8 million.
Overseas, concerns about upcoming corporate earnings reports sent U.S. stocks on Wall Street lower on Tuesday. After ending the previous session mostly lower, stocks saw some further downside during the day's trading. The major averages all ended the day firmly in negative territory, pulling back further off their recent highs, as traders continued to do some profit taking.
The continued weakness in the U.S. markets came as traders expressed some anxiety about the upcoming earning season and stocks' ability to sustain the recent upward move in light of expectations of weak quarterly results.
The major U.S. averages all posted steep losses on the day, with the Dow closing down 186.29 points or 2.3 percent at 7,789.56, while the Nasdaq closed down 45.10 points or 2.8 percent at 1,561.61 and the S&P 500 closed down 19.93 points or 2.4 percent at 815.55.
Crude oil posted its third straight decline on the New York Mercantile Exchange on Tuesday as traders awaited the Energy Information Administration's weekly inventory report. Oil fell for the third day in a row.
Light sweet crude for May delivery dropped to $49.43, down $1.62 for the session. Prices hit as low as $49.34 earlier in the session.
On the currency front, the New Zealand dollar was buying US57.47c by 8am on Wednesday, compared to US58.27c at 5pm on Tuesday.
In the early trading on the New Zealand stock market on Wednesday, market leader Telecom dropped 2.41%, as second ranked Contact Energy slipped 0.84% and Fletcher Building, the third best stock, slid 2.11%.
In the retail sector Hallenstein Glasson, jewelry retailer Michael Hill International, Pumpkin Patch and Warehouse remained unchanged.
In the energy sector Vector and TrustPower remained unchanged in the early trading on Wednesday.
Among the dual listed issues, AMP, APN News & Media, Lion Nathan, Telstra and Westpac Bank remained unchanged, as Australia and NZ Banking Corp eased 0.49%.
Among other notable stocks, Infratil declined 0.67%, Mainfreight fell 2.33%, Nuplex plunged 9.68%, Sky City slipped 1.09% and Sky Network Television advanced 0.26%, as Methven and Steel & Tube Holdings remained unchanged. Fisher & Paykel Healthcare collected 2.84%, as Fisher & Paykel Appliances dropped 2.27%.
Other major gainers in the day's early trading included- AMP NZ Office Trust by 1.19%, Cavalier by 0.54%, Guinness Peat Group by 1.54% and Rakon Limited by 0.82%.
Major losers on Wednesday morning were- Auckland International Airport by 1.18%, Goodman Property Trust by 1.27%, ING Property Trust by 3.51%, New Zealand Oil & Gas by 1.45% and Pike River Coal by 1.32%.
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