(RTTNews) - The New Zealand share market opened steeply lower on Tuesday, following sharp overnight losses on Wall Street where U.S. stocks fell sharply on profit taking and disappointing economic news.

The benchmark NZX 50 index was down 55.04 points or 2.05% to 2,627.88 shortly after the market opened for the day, while the broader NZX All Capital Index dropped 54.60 points or 2.00% to 2,674.94.

The New Zealand stock market closed lower for the first time in five days on Monday. The market started off higher, tracking Wall Street’s gains on Friday, but lost ground as investors locked in profits after the key index posted gains for the previous four trading sessions.

The benchmark NZX 50 index closed down 28.0 points or 1.0% at 2,682.9 and the broader NZX All Capital index shed 26.4 points or 1.0% to finish at 2,729.5. The New Zealand Stock Exchange listed the day’s trading volume at 22.62 million shares valued at NZ$45.58 million.

Overseas, the U.S. stocks moved sharply lower over the course of the trading day on Monday after turning in a strong performance last week. The major averages showed a steep drop at the open and continued lower throughout much of the session as investors reacted to some negative economic news as well as speeches from both Fed Chairman Bernanke and Treasury Secretary Paulson.

On the economic front, the Institute for Supply Management’s index of activity in the manufacturing sector fell to 36.2 in November from 38.9 in October, with a reading below 50 indicating a contraction in the sector. With the decrease, the index fell to its lowest level since May of 1982.

Separately, the Commerce Department released its report on construction spending in the month of October, showing that spending fell by more than expected amid a notable decrease in spending on residential construction.

Oil stocks posted particularly steep losses, as the price of oil fell by $5.15 to $49.28 a barrel on the New York Mercantile Exchange after OPEC delayed a decision to cut production.

On the currency front, the New Zealand dollar was buying US53.62c by 8am on Tuesday, compared to US54.18c at 5pm on Monday.

In the early trading on the New Zealand stock market on Tuesday, the country’s top ranked share Telecom plunged 4.29%, while the second ranked Contact Energy dropped 1.79%. Fletcher Building, the third best stock, slipped 2.70%.

In the retail sector Hallenstein Glasson, jewelry retailer Michael Hill International and Pumpkin Patch remained unchanged, as the Warehouse fell 2.32%.

In the energy sector Vector was down 1.00%, while TrustPower gained 0.74% in the early trading on Tuesday.

Among the dual listed issues, AMP, APN News & Media, Lion Nathan and Telstra and remained unchanged, while Australia and NZ Banking Corp gave up 8.57% and Westpac Bank fell 6.84%.

Among other notable stocks, Infratil dropped 3.49%, as Nuplex slipped 2.47% and Mainfreight lost 1.04%. Methven and Steel & Tube Holdings remained unchanged. Sky Network Television fell 2.73%, as Sky City declined 2.64%. Fisher & Paykel Appliances gave up 1.48%, as Fisher & Paykel Healthcare eased 1.29%.

Among the major losers in the early trading were - Auckland International Airport by 1.74%, AMP NZ Office Trust by 1.03%, Freightways by 2.37%, Goodman Property Trust by 2.83%, Guinness Peat Group by 1.08%, Kiwi Income Property Trust by 0.97%, New Zealand Oil & Gas by 4.62%, NZX Limited by 1.77%, Pike River Coal by 3.06%, Rakon by 3.36, Ryman Healthcare by 2.74%, Tourism Holdings by 1.39 and Tower by 2.00%.

The gainers among the shares listed under the NZX 50 index in the early trading on Tuesday included Air New Zealand Limited by 1.15% and the New Zealand Refining Company by 0.47%.

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

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