(RTTNews) - The New Zealand stock market opened slightly higher on Tuesday, following a strong overnight lead from Wall Street, where most U.S. stocks closed higher on strong earnings news and recent economic optimism.

The benchmark NZX 50 index added 6.77 points or 0.21% to 3,227.70 shortly after the market opened for the day. Meanwhile, the broader NZX All Capital index collected 4.99 points or 0.15% to be at 3,243.73.

New Zealand’s share market managed a gain on Monday despite weakness in the Australian market. The benchmark NZX 50 index advanced 13.7 points or 0.4 percent to close at 3,220.9. Trading volume was reported by the NZ Stock Exchange at 35.8 million shares valued at NZ$76.7 million. Advancing stocks outnumbered decliners 54 to 31 with 31 unchanged.

Overseas, U.S. stocks rose by notable margins on Monday, as traders continued to buy into the markets based on recent economic optimism. The major averages all closed on the upside by comfortable margins, reaching their best closing levels of the year despite a day that was relatively light on catalysts.

The strength in the markets came as traders reacted to the latest batch of earnings news, with Gannett (GCI) and Eaton (ETN) turning in strong performances after both companies reported third quarter earnings that exceeded analyst estimates.

Separately, Federal Reserve Chairman Ben Bernanke said that the U.S. has benefited from Asia’s rapid development and integration into the world economy, but he said that both regions need to take steps to avoid financial imbalances in the future.

Speaking at the San Francisco Federal Reserve Bank’s conference on Asia and the Global Financial Crisis in Santa Barbara, Bernanke said that Asian economies are also leading the world’s economic recovery but that they also must increase spending.

Meanwhile, homebuilder confidence unexpectedly slipped in the month of October, according to a report released by the National Association Of Home Builders, with the decrease reflecting concerns about the upcoming expiration of the $8,000 tax credit for first-time buyers.

The report showed that the NAHB/Wells Fargo Housing Market Index edged down to 18 in October from 19 in September. The decrease came as a surprise to economists, who had expected the index to edge up to a reading of 20.

The major U.S. averages moved roughly sideways throughout the afternoon, ending the session near their best levels of the day. The Dow closed up by 96.28 points or 1 percent at 10,092.19, the Nasdaq advanced 19.52 points or 0.9 percent to end at 2,176.32 and the S&P 500 rose by 10.23 points or 0.9 percent to 1,097.91.

Crude oil rose toward $80 per barrel on the New York Mercantile Exchange on Monday as higher global equities improved the outlook for energy demand. Oil has gained for eight straight sessions and is at its highest levels in more than a year. Light sweet crude oil for November delivery finished at $79.61 per barrel, up $1.08 on the session. Prices fell as low as $78.05 after earlier reaching as high as $79.96.

On the currency front, the New Zealand dollar was buying US75.37c by 8am on Tuesday, compared to US74.37c at 5pm on Monday. The kiwi had touched the 15-month high of US75.50c mark around 5 am.

In the early trading on the New Zealand stock market on Tuesday, market leader Telecom added 0.40%, while second ranked Contact Energy and Fletcher Building, the third best stock, remained unchanged.

In the retail sector, Hallenstein Glasson, jewelry retailer Michael Hill International, Pumpkin Patch and Warehouse remained unchanged. Among energy stocks, TrustPower remained unchanged, as Vector declined 0.50% in the early trading.

Among the dual listed issues, AMP, Australia and NZ Banking Corp, APN News & Media, Lion Nathan, Telstra and Westpac Bank remained unchanged in the early trading on Tuesday morning.

Among other notable stocks, Infratil gained 0.60%, Mainfreight added 0.153%, Methven lost 0.57%, Nuplex advanced 0.42%, Sky City collected 0.29%, Sky Network Television declined 0.40% and Steel & Tube Holdings surged 2.01%. Meanwhile, Fisher & Paykel Appliances jumped 1.56% as Fisher & Paykel Healthcare dropped 1.64%.

The major losers among stocks listed under the benchmark NZX 50 index in the early trading on Tuesday included - AMP NZ Office Trust by 1.15%, New Zealand Oil & Gas by 0.57%, NZX Limited by 0.12%, Property For Industry by 0.83% and PGG Wrightson by 1.28%.

The gainers included– Auckland International Airport by 0.50%, Air New Zealand by 0.77%, Cavalier by 0.81%, New Zealand Refining Company by 0.39%, Port of Tauranga by 0.69%, Rakon by 2.50% and Ryman Healthcare by 1.07%.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved

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

Subscribe by RSS Subscribe by Email