RTTNews - The New Zealand share market opened moderately stronger on Tuesday, following the solid overnight gains made on the Wall Street where U.S. stocks closed higher on encouraging corporate news and better-than-expected earnings results.
The benchmark NZX 50 index was up 19.34 points or 0.69% to 2,840.25 shortly after the market opened for the day, while the broader NZX All Capital index added 13.29 points or 0.46% to 2,899.29.
New Zealand's share market closed modestly higher to open the week on Monday. The benchmark NZX-50 index advanced 12.7 points or 0.5 percent at 2,820.9. Trading volume was reported by the New Zealand Stock Exchange at 25.1 million shares valued at NZ$59.2 million.
Overseas, U.S. stocks posted strong gains on Monday, boosted by promising earnings results and reassuring news from commercial lending giant CIT Group (CIT). The major averages kicked off the week on a positive note, finishing in positive territory by solid margins.
In earnings news, Halliburton Co. (HAL), M&T Bank Corp. (MTB), Hasbro (HAS), Eaton (ETN) and Johnson Controls (JCI) all reported quarterly results that largely exceeded Wall Street expectations, bolstering trader optimism.
Some trader concern regarding the bankruptcy of CIT Group was alleviated on Tuesday morning, as the lending giant reportedly secured $3 billion in financing from some of its largest bondholders.
On the economic front, the Conference Board released a report showing that its index of leading economic indicators increased by more than expected in June, although both the coincident index and lagging index continued to decline.
The report showed that the leading indicators index increased by 0.7 percent in June following an upwardly revised 1.3 percent increase in May. Economists had expected the index to increase by 0.5 percent compared to the 1.2 percent increase originally reported for the previous month.
The major U.S. averages saw further upside heading into the close, finishing near their best levels of the day. The Dow advanced by 104.21 points or 1.2 percent to 8,848.15, the Nasdaq climbed by 22.68 points or 1.2 percent to 1,909.29 and the S&P 500 rose by 10.74 points or 1.1 percent to 951.13.
Crude oil gained for a fourth straight day on Monday on the New York Mercantile Exchange as higher global equities led to optimism regarding energy demand. However, prices retreated off their highs of the day as traders collected profits. Light sweet crude oil for August settlement finished at $63.98 per barrel, up 42 cents on the session. Prices reached as high as $64.90, a 13-day best.
On the currency front, the New Zealand dollar was buying US65.68c at 8am on Tuesday, when compared to US64.80c at 5pm on Monday. In the early hours of Tuesday, the kiwi had touched a seven-week high of US65.75c against a broadly weakening greenback..
In the early trading on the New Zealand stock market on Tuesday, market leader Telecom gained 0.73%, as second ranked Contact Energy added 0.51% and Fletcher Building, the third best stock, collected 1.32%.
In the retail sector, Hallenstein Glasson and Warehouse remained unchanged, as jewelry retailer Michael Hill International surged 4.69% and Pumpkin Patch advanced 0.66%. Among energy stocks, Vector and TrustPower remained unchanged
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 added 1.16%, Methven collected 0.74%, Mainfreight climbed 1.72%, Nuplex advanced 0.58%, Steel & Tube Holdings gained 0.69%, Sky Network Television inched up by 0.24% and Sky City gained 1.75%. Fisher & Paykel Appliances jumped 1.45%, as Fisher & Paykel Healthcare added 0.34%.
There were no losers among the stocks listed under the NZX 50 index in the early trading on Tuesday. The morning's major gainers included-- Auckland International Airport by 1.29%, Air New Zealand by 2.15%, Cavalier by 2.08%, Goodman Property Trust by 1.08%, Guinness Peat Group by 13.73%, NZ Farming Systems by 2.04%, PGG Wrightson by 1.02%, Rakon by 1.43%, Ryman Healthcare by 1.32% and Tower by 1.17%.
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