RTTNews - The New Zealand share market opened slightly lower on Thursday, following overnight losses on Wall Street where U.S. averages closed lower over worries of rising yields on US government debt prompting higher borrowing costs.
The benchmark NZX 50 index was down 15.74 points or 0.57% to 2,754.03 shortly after the market opened for the day, while the broader NZX All Capital Index gave up 18.24 points or 0.64% to 2,816.16.
A big rise in Fisher & Paykel Appliances helped push New Zealand's market to a gain on Wednesday. The company's stocks jumped more than 56% on volume of over 24 million shares after news that Chinese company Haier will become a 20 percent shareholder and raise NZ$142 million in equity.
The benchmark NZX-50 index advanced 35.71 points or 1.3 percent to 2,769.78. The New Zealand Stock Exchange reported trading volume of 80.4 million shares valued at NZ$110.5 million. Advancing issues outnumbered decliners 55 to 31 with 37 closing unchanged.
Overseas, U.S. stocks saw a considerable pullback during Wednesday's trading after a notable rally in the previous session. The major averages showed lack of conviction during the first half of the day before moving firmly into negative territory in the afternoon.
Equities struggled to find direction in morning trading following a mixed report from the housing market. While a National Association of Realtors report showed a bigger than expected increase in existing home sales, the report also showed a considerable increase in housing inventories.
Nonetheless, stocks came under selling pressure following the Treasury Department's auction of $35.0 billion worth of 5-year notes. The sale drew a high-yield of 2.310 percent while attracting moderately strong demand, with the bid-to-cover ratio coming in at 2.32.
In other news, the Federal Reserve continued its treasury buyback program this morning, the second quantitative easing move of the week. The New York Federal Reserve purchased $6.0 billion worth of securities with maturity dates ranging from May of 2012 to August of 2013.
The day's buyback saw a total of $18.82 billion in treasuries submitted for the purchase. This week, the Fed purchased $7.55 billion in treasuries bringing the total to $130.53 billion since the program began on March 25th.
The major averages all closed firmly in the red, just off their worst levels of the day. The Dow closed down 173.47 points or 2.1 percent at 8,300.02, the Nasdaq closed down 19.35 points or 1.1 percent at 1,731.08 and the S&P 500 closed down 17.27 points or 1.9 percent at 893.06.
Crude oil rallied to a fresh multi-month high on Wednesday amid hopes energy demand will continue to improve. Traders awaited the results Organization of Petroleum Exporting Countries meeting as well as Department of Energy inventory data tomorrow.
Light sweet crude oil for July delivery rallied to $63.45, up $1 on the session. This marks oil's highest closing number since November 5.
On the currency front, the New Zealand dollar was buying US61.60c by 8am on Thursday, after touching a seven-month high around US62.60c shortly after 8am on Wednesday.
In the early trading on the New Zealand stock market on Thursday, market leader Telecom fell 2.68%, as second ranked Contact Energy gave up 0.51%, and Fletcher Building, the third best stock, declined 0.47%.
In the retail sector, Hallenstein Glasson and jewelry retailer Michael Hill International, remained unchanged, while Pumpkin Patch fell 1.60% and Warehouse eased 0.54%.
In the energy sector, Vector gained 0.47%, as TrustPower gave up 0.63 in the early trading on Thursday.
Among the dual listed issues, AMP and APN News & Media remained unchanged, as Australia and NZ Banking Corp surged 5.54%, Lion Nathan eased 0.07%, Telstra added 0.50% and Westpac Bank fell 0.63%.
Among other notable stocks, Infratil dropped 1.21%, Mainfreight fell 3.06%, Methven jumped 5.15%, Nuplex slipped 2.22% and Sky City declined 0.70%, as Sky Network Television and Steel & Tube Holdings remained unchanged. Fisher & Paykel Appliances collected 3.88%, while Fisher & Paykel Healthcare collected 1.40%.
Other gainers in the day's early trading included- Goodman Property Trust by 1.22%, New Zealand Oil & Gas by 0.67%, NZX Limited by 0.37%, Property For Industry Limited by 0.87%, Ryman Healthcare Limited by 0.61% and Tourism Holdings Limited by 2.08%.
The losers on Wednesday morning included- Cavalier by 2.70%, Freightways by 0.33%, ING Medical Properties Trust by 0.83%, NZ Farming Systems 3.70%, PGG Wrightson by 1.49%, Rakon by 0.68% and Tower by 0.62%.
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