There was a lot going on today for sharemarket investors to absorb in terms of the economic agenda in New Zealand and they generally adopted a wait and see attitude to it.Shortly after news broke that inflation in the December quarter was lower than expec
There was a lot going on today for sharemarket investors to absorb in terms of the economic agenda in New Zealand and they generally adopted a wait and see attitude to it.
Shortly after news broke that inflation in the December quarter was lower than expected, a report calling on the government to cut company and income taxes and raise GST and taxes on assets was released.
Also, news broke of curbs to bank lending in China, which knocked sharemarkets lower in Asia. The NZ dollar fell about a US cent, helping companies which export.
"It’s another sign the Chinese economy is running at full steam. Obviously attempts to slow it will be met by short term weakness but in the long run, this should be seen as a positive as it helps prevent the economy from overheating and asset bubbles from forming,'' said Ben Potter, research analystat IG Markets.
The benchmark NZX-50 index closed down 0.342 points at 3227.25, after losing 19.5 points yesterday, its sixth decline in the past seven trading days.
There were 39 rises and 35 falls among the 115 stocks traded.
Business groups welcomed a tax working group report suggesting company tax be cut but rejected a proposal for a land tax. Investors are now waiting to see if the government runs with a comprehensive revamp of the tax system in this year's budget.
Otherwise, investors continue to be cautious ahead of the local corporate reporting season in February.
Fletcher Building fell 4c to $8.03, having fallen 24c in the past two days, while Telecom rose 1c to $2.46 on top of yesterday's 7c decline. Contact Energy rose 3c to $6.09.
Auckland Airport was unchanged at $1.90, while Tower rose 1c to $2.06 and NZX rose 1c to $2.29.
Nuplex was unchanged at $3.06 as was SkyCity on $3.31. Freightways rose 2c to $3.46.
Methven eased 2c to $1.76 and The Warehouse eased 9c to $3.79. Tourism Holdings eased 6c to 95c and ING Property eased 2c to 77c.
In the US, the Dow Jones Industrial Average and the S&P 500 index rose to fresh 15-month closing highs as investors bet a potential Republican victory in Massachusetts' Senate race could stall President Barack Obama's health reform agenda.
The Dow was up 1.1% to end at 10,725.43, the S&P 500 up 1.25% to 1150.23 and the Nasdaq Composite Index up 1.4% to 2320.40.
