New Zealand Market Opens Lower On Wall Street’s Negative Lead

(RTTNews) - The New Zealand share market opened lower on Friday, following the negative lead from the Wall Street, where U.S. stocks tumbled overnight on concerns over the ailing U.S. auto industry and a disappointing economic data.

The benchmark NZX 50 index was down 47.12 points or 1.78% to 2597.54 shortly after the market opened for the day, while the broader NZX All Capital Index lost 45.49 points or 1.69% to 2640.04.

The New Zealand stock market closed lower for the fourth day on Thursday. The market started off in negative terrain, tracking Wall Street’s plunge overnight, and extended its losses amid weakness among regional markets.

The benchmark NZX 50 index closed down 61.6 points or 2.3% at 2,644.7 and the broader NZX All Capital index shed 65.3 points or 2.4% to 2,685.5.

Overseas, the U.S. stocks ended Thursday’s trading sharply lower following a late day sell-off. With traders reacting to disappointing economic data, the major averages all ended the session at multi-year closing lows.

The U.S. stocks showed a substantial decline in early trading following the release of a report from the Labor Department showing that first-time claims for unemployment benefits unexpectedly jumped to a sixteen-year high last week.

Also on Thursday, the Democratic leaders rejected a compromise auto bailout plan for the three big U.S. automakers, saying that Congress may revisit the issue in December. Some reports also suggested that the bailout of the three big U.S. automakers could be delayed until the new presidential administration takes office in January.

The major U.S. averages all closed sharply lower, with the Dow and the Nasdaq ending the day at their worst closing level since March of 2003 while the S&P 500 ended the session at its lowest closing level since April of 1997.

The price of oil closed below $50 a barrel on the New York Mercantile Exchange on Thursday, amidst intensifying fears that the world may be on the verge of slowdown not seen since the Great Depression. Crude for December closed down $4.00 to settle at $49.62 a barrel, the lowest settlement in more than three years.

On the currency front, the New Zealand dollar was buying US53.16c by 8am on Friday, compared to US54.09c at 5pm on Thursday. Earlier, the Kiwi had dropped to around US52.80c during the night.

In the early trading on the New Zealand stock market on Friday, the country’s top ranked share Telecom plunged 2.16%, while the second ranked Contact Energy dropped 1.47%. Fletcher Building, the third best stock, slipped 3.28%.

In the retail sector Hallenstein Glasson and the Warehouse remained unchanged. Jewelry retailer Michael Hill International dropped 5.17%, as Pumpkin Patch slipped 1.18%.

In the energy sector Vector eased 0.52%, while TrustPower remained unchanged in the early trading on Friday.

Among the dual listed issues AMP, APN News & Media, Lion Nathan and Telstra remained unchanged. Australia and NZ Banking Corp gave up 3.23%, as Westpac Bank fell 2.41%.

Among other notable stocks Infratil dropped 1.20%, as Nuplex lost 2.11%. Methven, Steel & Tube Holdings and Sky Network Television remained unchanged. Mainfreight declined 0.93%, as Sky City slipped 4.55%. Fisher & Paykel Appliances plunged 4.00%, as Fisher & Paykel Healthcare gave up 0.97%.

Among the major losers in the early trading were - Auckland International Airport by 2.44%, Ebos by 0.25%, Goodman Property Trust by 1.98%, Guinness Peat Group by 3.23%, ING Property Trust by 1.61%, Kiwi Income Property Trust by 1.90%, New Zealand Oil & Gas by 5.88%, New Zealand Refining Company by 0.16%, NZX Limited by 5.17%, Port of Tauranga by 2.52%, Pike River Coal by 2.13%, Ryman Healthcare by 0.74% and Sanford by 0.94%.

The only two gainers among the shares listed under the NZX 50 index in the early trading on Friday were Tourism Holdings Limited by 1.39% and Tower Limited by 0.70%.

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Posted in Categories: Australia, New Zealand, Releases, Stocks, USA.