NZ sharemarket starts week in retreat
The drop was echoed in Asian markets that wobbled on worries that China's latest move to control its economy could reduce demand.
The New Zealand sharemarket drifted lower today as Asian markets wobbled on worries that China's latest move to control its economy could reduce demand.
The weakness came even though there was a strong lead from Wall Street on Friday and the US will be absent tonight due to the Martin Luther King public holiday.
The benchmark NZX-50 index closed down 15.587 points, or 0.5%, at 3354.303. Turnover was worth $65.2 million. There were 33 rises and 38 falls among the 118 stocks traded.
The Warehouse rose 3c to 359 after hitting down speculation it may dumping its chief executive Ian Morrice, while revealing he had talked to the board last year about retiring this year. The company reiterated that previously released disappointing trading results in the two months to January 2 were indicative of trading conditions for retailers generally.
Michael Hill International fell 2c to 89 on the day a company associated with founder Michael Hill dispatched its offer to buy 5% of the company at 90c a share.
Sam Stubbs, chief executive of Tower Investments, said today that investors sided with taking on more risk at the end of last year even though weaker European economies rattled markets.
"This decision to embrace risk rather than take fright and run to the perceived safety of cash and bonds at the first sign of renewed trouble perhaps signals a sea change in market psychology and a significant decrease in risk aversion," he said.
Cavalier Carpets rose 11c to 325, Freightways rose 4c to 329 and NZ Oil & Gas rose 1c to 87.
The leaders were weak, with Telecom down 2c to 226, Contact Energy down 2c to 636 and Fletcher Building down 4c to 790.
Xero gained 10c to 265, having fallen during the first two weeks of January after hitting a record 316 at the end of 2010.
Charlie's rose 1c to 20 and Scott Technology rose 1c to 136.
APN News fell 18c to 240 and Rakon fell 3c to 125. Auckland Airport fell 2c to 224 and Sanford fell 5c to 460. TrustPower fell 2c to 728.
NZPA
Mon, 17 Jan 2011
Mon, 17 Jan 2011
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NZ sharemarket starts week in retreat
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