NZ sharemarket flat despite global weakness
Share prices were little changed today after disappointing earnings weighed on the US market.
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The New Zealand sharemarket was little changed today after disappointing earnings weighed on the US market and as investors waited to assess the state of the government's finance in tomorrow's Budget.
The benchmark NZX-50 index closed up 1.5 points at 3559.553 after opening flat. Investors are waiting to see the reaction of credit rating agencies to the budget and how credible the forecast return to surplus is.
IG Markets said the Australian government has locked itself in to returning the Federal budget to surplus by 2013, which gives it little flexibility to stimulate under-performing sectors of the economy.
Investors appeared unimpressed with frequency control product manufacturer Rakon's full-year results, cutting the company's share price 7.25% to 115.
Rakon reported a 31% rise in full year revenue to $189.3 million as it capitalised on growth in the use of smart wireless devices and data usage across telecommunications networks.
Telecom shares fell 3.5c early to 233 but ended up a cent at 237.5 even though the government has pulled a regulatory holiday from its ultrafast broadband plan.
Fletcher Building fell 8c to 900 and Contact Energy was unchanged at 601.
DNZ Property was unchanged as it talked up its takeover plan for Argosy Property, while Goodman Property fell a cent to 95 even though it report higher distributable earnings.
Kiwi Income Property Trust eased 0.5c to 105 after lifted its full-year distributable income 12.6% to $68.8 million. Infratil rose a cent to 195 a day after it reported earnings.
Mainfreight rose 11c to 946, Cavalier Carpets rose 12c to 377 and NZX rose 6c to 236. Abano Healthcare rose 10c to 460.
NZPA
Wed, 18 May 2011
Wed, 18 May 2011
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NZ sharemarket flat despite global weakness
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