RTTNews - New Zealand share market opened flat on Wednesday, despite modest overnight gains on Wall Street where major U.S. averages closed slightly higher on some reassuring economic data.
The benchmark NZX 50 index was up 3.59 points or 0.13% to 2,810.79 shortly after the market opened for the day, while the broader NZX All Capital Index eased 2.45 points or 0.09% to 2,874.07.
New Zealand's market rose on Tuesday following a long weekend. The benchmark NZX-50 index advanced 43.03 points or 1.56 percent to 2,807.2. The NZ Stock Exchange reported trading volume of 82.3 million shares valued at NZ$134.5 million. Advancing stocks outnumbered decliners 63 to 39 with 19 closing unchanged.
Overseas, U.S. stocks were able to end Tuesday's trading mostly higher after seeing choppy trading for most of the session. The major averages all finished the day in positive territory, extending their winning streak for a fourth straight session.
With traders expressing some uncertainty about the outlook for the markets, the major averages were unable to sustain any significant moves. Nonetheless, they all closed modestly above the unchanged line, with the Dow edging up about 20 points.
Earlier in the session, traders reacted positively to the release of a report from the National Association of Realtors showing that pending home sales increased by much more than expected in the month of April. The increase came as homebuyers responded to very favorable market conditions.
In corporate news, General Motors revealed this morning that it has entered into a memorandum of understanding, or MoU, with a buyer for its premium off-road brand Hummer. The deal would save around 3,000 jobs in the U.S.
The major U.S. averages ended the day modestly higher, although well off their best levels of the day. The Dow finished up by 19.43 points or 0.2 percent at 8,740.87, the Nasdaq closed up 8.12 points or 0.4 percent, at 1,836.80 and the S&P 500 finished up by 1.87 points or 0.2 percent at 944.74.
Oil prices were flat on the New York Mercantile Exchange on Tuesday amid choppy trading after briefly reaching above $69 per barrel. Prices remained near the seven-month closing high from the previous session.
Crude oil prices finished at $68.55 per barrel, down 3 cents on the choppy session. Prices touched as high as $69.05 after hitting a slow as $67.50.
Investors awaited the Energy Information Administration's weekly inventory report, which is due at 10:30 a.m. ET tomorrow. Last week's data that showed stockpiles fell by 5.4 million barrels in the week ending May 22. American Petroleum Institute data will be released later this afternoon.
On the currency front, the New Zealand dollar was buying US65.75c by 8am on Wednesday, after dropping below the US64.50c mark briefly on Tuesday evening.
In the early trading on the New Zealand stock market on Wednesday, market leader Telecom slipped 0.76%, as second ranked Contact Energy remained unchanged, and Fletcher Building, the third best stock, added 0.29%.
In the retail sector, Hallenstein Glasson, Pumpkin Patch and Warehouse remained unchanged, as jewelry retailer Michael Hill International surged 3.08%.
In the energy sector, Vector collected 0.97%, as TrustPower remained unchanged in the early trading on Wednesday.
Among the dual listed issues, AMP, Australia and NZ Banking Corp, APN News & Media, Lion Nathan and Telstra remained unchanged, as Westpac Bank inched up by 0.04%.
Among other notable stocks, Infratil climbed 1.23%, Mainfreight added 0.45% and Sky City declined 0.35%, as Methven, Nuplex slumped 6.52%, Sky Network Television and Steel & Tube Holdings remained unchanged. Fisher & Paykel Appliances collected 0.87%, as Fisher & Paykel Healthcare remained unchanged.
Other gainers in the day's early trading included- Air New Zealand by 0.95%, Goodman Property Trust by 1.19%, ING Property Trust by 1.79%, New Zealand Refining Company by 0.42%, Port of Tauranga by 0.49%, Rakon by 2.05%, Ryman Healthcare by 0.61% and Skellerup Holdings by 1.72%.
The losers on Wednesday morning included- Guinness Peat Group by 6.49%, Kiwi Income Property Trust by 1.06%, New Zealand Oil & Gas by 0.62%, NZ Farming Systems by 1.89%, PGG Wrightson by 2.31%, Pike River Coal by 2.52% and Tower by 2.17%.
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