The New Zealand sharemarket remained flat today as the focus remained on the economy after the release of further soft data and a gloomier outlook from the government and economists.The benchmark NZX-50 closed down 2.33 points at 3288.96, after gaining 18
The New Zealand sharemarket remained flat today as the focus remained on the economy after the release of further soft data and a gloomier outlook from the government and economists.
The benchmark NZX-50 closed down 2.33 points at 3288.96, after gaining 18 points yesterday.
Market leaders were mixed, with Telecom up 2c at 212, Fletcher Building up 2c at 785, Contact Energy a cent lower at 617 and Infratil down 2c at 187.
Shares in small cap rubber goods maker Skellerup rose after the New Zealand Exchange announced the stock would move on to the NZX-50 index, replacing Pike River Coal, which went into receivership yesterday.
Pike River would be removed from all its equity indices, while Skellerup's position on the NZX-50 would be effective from December 20, NZX said.
Shortly after the market opened today, Skellerup shares were up 5c to 104, its highest level in 3-1/2 years. The stock closed up 4c.
The New Zealand dollar hit a decade low against the Australian dollar on the back of weak retail sales data and then the release of the Government's six-monthly economic and fiscal update.
Seasonally adjusted retail sales fell 2.5% in October – more than reversing September's 1.7% gain, weaker than expectations and the largest decline in percentage terms in more than 13 years.
Core retail sales, which exclude the motor vehicle-related industries, fell a seasonally adjusted 1.6% in October from September, when it had lifted 1.7%t.
That was followed by government financial forecasts published today seen as showing politicians in a "fiscal straitjacket" heading into next year's election.
Treasury's update showed the government deficit to peak at 5.5% of GDP in the June 2011 year, above the 4.2% forecast in the 2010 budget.
The government was still heading for a fiscal surplus in 2015/16, as forecast in the 2010 budget, despite one-off costs including $1.5 billion for the Canterbury earthquake, and slower than expected economic activity.
The sharemarket reaction was negligible. Retailers were subdued, with The Warehouse down 3c at 372, Hallenstein Glasson flat at 417 and Pumpkin Patch down 4c at 170.
Restaurant Brands was unchanged at 261 despite a 1.8% rise in third quarter sales.
Port of Tauranga was down 3c at 742, carpetmaker Cavalier was down 5c at 303, and NZ Oil and Gas was down 2c at 85.
Kathmandu Holdings was up 4c at 170, Steel and Tube rose 2c to 211 and Ryman Healthcare gained a cent to 225.
Shares were flat across the Tasman as well, with Australia's S&P/ASX 200 Index up 5 points at 4762.
