NZ sharemarket ends lower in late reversal

Friday 3rd December 2010

The New Zealand sharemarket ended down after spending most of the session in positive territory after receiving a positive lead from the US market.

The benchmark NZX-50 index closed down 2.188 points, or 0.067%, at 3283.298.

Contact Energy (NZX: CEN ) was one standout performer, rising 5c to 607, the highest level since May.

Grant Williamson, director at Hamilton, Hindin, Greene, said investors were positive about the completion of the company's Ahuroa gas facility, which will give it flexibility in generation.

But Telecom (NZX: TEL ) fell 3c to 215 as investors continued to wait for news on the Government's broadband plans.

Ultra fast broadband looks set to be popular with business, according to a survey carried out by Crown Fibre Holdings and the Telecommunications Users Association of New Zealand released today.

Tourism Holdings (NZX: THL ) fell 1c to 74 after disclosing it is buying a recreational vehicle rental firm in the US.

"It is a company with a pretty chequered past with a number of earnings downgrades. They have been liquidating assets rather than accumulating so this is a bit of a turn around for them," Mr Williamson said.

Online accounting software firm Xero (NZX: XRO ) rose 13c to a record 218. It is the first New Zealand business to make it into Deloitte Technology Fast 500's top 10 fastest growing companies in the Asia Pacific.

Infratil (NZX: IFT ) fell 4c to 185, The Warehouse (NZX: WHS ) fell 7c to 374 and Michael Hill fell (NZX: MHI ) 1c to 81. Auckland Airport (NZX: AIA ) fell 2c to 209.

NZX (NZX: NZX ) fell 1c to 147 and Cavalier Carpets (NZX: CAV ) fell 1c to 302. Postie Plus (NZX: PPG ) fell 1c to 29. Scott Technology (NZX: SCT ) fell 2c to 120.

Fletcher Building (NZX: FBU ) rose 4c to 795 and TrustPower (NZX: TPW ) rose 7c to 746.

Investors are looking ahead to next Thursday's Monetary Policy Statement. Westpac said it expect it to be a fairly low-impact statement.

In the US, stocks continued the strong start to December into a second day, as strong retail sales and a healthy reading on the housing market helped boost major indexes.

The Dow Jones industrial average was up 1% to close at 11,362 the S&P 500 rose 1.3% to 1221, and the Nasdaq composite index rose 1.2% to 2579.

NZPA

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