New Zealand stock market opened marginally lower on Thursday despite a positive overnight lead from the Wall Street, where the major U.S. averages closed higher after better-than-expected economic data raised hopes of improvement in the economy.
The benchmark NZX 50 index was down 5.65 points or 0.22% to 2,563.58 shortly after the market opened for the day, while the broader NZX All Capital Index slipped 6.33 points or 0.24% to 2,612.79.
The New Zealand share market had closed lower on Wednesday, with the benchmark NZX 50 index down 21.15 points or 0.82% to 2569.24. Turnover totaled $84.4 million.
Overseas, the U.S. stocks showed a substantial turnaround over the course of the trading day on Wednesday seeing some initial weakness, eventually ending the day sharply higher. Investors shrugged off some negative news and turned their focus to better-than-expected reports on pending home sales, construction spending, and manufacturing activity.
Also, traders kept an eye on London throughout the session, waiting for news from the G20 summit of global leaders. The leaders will discuss efforts to deal with the weakness in the global economy.
The major U.S. averages continued to perform well in late day trading, ending the session near their best levels of the day. The Dow closed up 152.68 points or 2 percent at 7,761.60, the Nasdaq closed up 23.01 points or 1.5 percent at 1,551.60 and the S&P 500 closed up 13.21 points or 1.7 percent at 811.08.
Crude oil prices dropped on the New York Mercantile Exchange on Wednesday as Energy Information Administration data revealed a build in both crude oil and gasoline stockpiles. The rally took prices further away from the $55 a barrel mark challenged last week.
Light sweet crude for May delivery dropped to $48.39, down $1.27 on the session. Prices touched as low as $47.26 a day after touching as high as $50.
On the currency front, the New Zealand dollar was buying US56.66c by 8 am on Thursday, compared to US55.74c at 5pm on Wednesday. The kiwi had touched a low of US55.30c during the night, but was above US56.10c for most of the early morning trading.
In the early trading on the New Zealand stock market on Thursday, market leader Telecom eased 0.43%, as second ranked Contact Energy surged 3.42% and Fletcher Building, the third best stock, lost 3.23%.
In the retail sector Hallenstein Glasson added 1.87%, as jewelry retailer Michael Hill International and Warehouse remained unchanged. Pumpkin Patch collected 1.96%.
In the energy sector Vector advanced 1.87%, as TrustPower declined 0.71% in the early trading on Thursday.
Among the dual listed issues, AMP slipped 1.72%, as Australia and NZ Banking Corp, APN News & Media, Lion Nathan, Telstra and Westpac Bank remained unchanged.
Among other notable stocks, Infratil gained 1.41% and Sky City added 0.73%, as Methven, Mainfreight and Sky Network Television remained unchanged. Fisher & Paykel Healthcare collected 0.32%, as Fisher & Paykel Appliances remained unchanged.
Other major gainers in the day's early trading included- Air New Zealand by 2.22%, AMP NZ Office Trust by 1.14%, Cavalier by 13.71%, Ebos Group by 1.73%, Freightways by 1.80%, New Zealand Oil & Gas by 1.49%, Rakon by 6.56%, and Tower Limited by 1.60%.
Major losers on Thursday morning were- Kiwi Income Property Trust by 5.21%, Nuplex Industries Limited by 59.26% NZX Limited by 0.15% and Steel & Tube Holdings by 0.78%.
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