RTTNews - New Zealand's share market opened marginally lower on Tuesday, after the major U.S. averages closed mixed overnight despite a late recovery attempt.
The benchmark NZX 50 index was down 1.37 points or 0.05% to 2,815.24 shortly after the market opened for the day, while the broader NZX All Capital Index eased 1.05 points or 0.04% to 2,876.69.
New Zealand shares moved moderately lower on Monday, on a day of late trading. The benchmark NZX-50 index declined 17.89 points or 0.5 percent at 2,816.16. Trading volume was reported by the New Zealand Stock Exchange at 37.5 million shares valued at NZ$63.6 million. Advancing issues outnumbered decliners 43 to 35, with 40 unchanged.
Overseas, U.S. stocks finished Monday's session little changed, as some traders went bargain hunting in the afternoon following a morning sell-off. The major averages finished on opposite sides of the unchanged line but only by minuscule margins.
The lack of significant movement came as the day's session was marred by low volume and a lull in economic data. Traders did some profit taking early on but were enticed back into the market following some speculation about a near-term economic recovery.
Meanwhile, the Federal Reserve continued its treasury buyback program Monday, completing the first of two quantitative easing moves for the week. The New York Fed purchased $7.50 billion worth of securities with maturity dates ranging from December of 2013 to April of 2016.
The day's buyback saw a total of $29.97 billion in treasuries submitted for the purchase. Overall, the Fed has purchased a total of $153.02 billion since the program began on March 25th. Some speculation has risen as to whether the Fed will raise interest rates to combat the effects of expected inflation following its quantitative easing actions.
Meanwhile, President Barack Obama is ramping up the economic stimulus spending, pledging to create over 600,000 jobs this summer. Obama made the announcement Monday morning, stating that he will accelerate the implementation of the $787 billion stimulus in the next 100 days.
The major U.S. averages closed little changed after the day's losses were largely offset by a late session rally. While the Dow finished up by 1.36 or less than a tenth of a percent at 8,764.49, the Nasdaq dipped by 7.02 or 0.4 percent to 1842.40, and the S&P 500 fell 0.95 or 0.1 percent to 939.14.
Crude oil finished slightly lower amid a bout with profit-taking on Monday, but recovered most of its earlier losses. Global equities rebounded, adding to the hopes for improved energy demand.
Light sweet crude for July delivery finished at $68.09 per barrel, down 35 cents on the session. Earlier, oil fell as low as $66.78 but later climbed as high as $68.95.
On the currency front, the New Zealand dollar was buying US61.99c by 8am on Tuesday, compared to US62.83c at 5pm on Monday. The kiwi had dropped below the US61.50c mark briefly during the night.
In the early trading on the New Zealand stock market on Tuesday, market leader Telecom added 1.17%, as second ranked Contact Energy slipped 0.71% and Fletcher Building, the third best stock, fell 0.58%.
In the retail sector, Hallenstein Glasson, jewelry retailer Michael Hill International and Warehouse remained unchanged, as Pumpkin Patch lost 0.75%.
In the energy sector, Vector gave up 1.44%, as TrustPower remained unchanged in the early trading on Tuesday.
Among the dual listed issues, AMP, APN News & Media, Lion Nathan, Telstra and Westpac Bank remained unchanged, as Australia and NZ Banking Corp surged 2.44%.
Among other notable stocks, Infratil, Nuplex, Sky Network Television and Steel & Tube Holdings remained unchanged, as Mainfreight fell 0.94%, Methven dropped 0.75% and Sky City collected 1.09%. Fisher & Paykel Appliances was down 1.43%, as Fisher & Paykel Healthcare remained unchanged.
Other gainers in the day's early trading included- Air New Zealand by 0.97%, New Zealand Refining Company by 0.14%, PGG Wrightson by 0.76% and Sanford Limited by 0.35%.
The losers on Tuesday morning included- Goodman Fielder by 1.69%, Kiwi Income Property Trust by 4.21%, New Zealand Oil & Gas by 0.63%, Property For Industry by 0.85%, Port of Tauranga by 1.27% and Rakon by 0.62%.
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