News of a worse-than-expected contraction of the New Zealand economy in the March quarter led to an under-performance of nation's stockmarket today.
The benchmark NZSX-50 index closed down 0.039 points, or 0.001 per cent, at 2770.619. In contrast, as the New Zealand marked ended, the Australian market was up 1.3 per cent after US stocks rallied on Thursday.
New Zealand gross domestic product contracted by 1 per cent in the March quarter, Statistics New Zealand said. This was more than the 0.7 per cent market consensus and the data triggered a fall in the NZ dollar, some of which was recouped.
"The GDP data caused the market to come off this afternoon. We were looking quite reasonable, up 10 or 12 points," said Grant Williamson, director at Hamilton, Hindin, Green said.
Investors again took to the sidelines and leading shares were affected.
Telecom fell 2c to 265 but Fletcher Building shrugged off weakness to close up a cent at 640.
Contact fell 6c to 565, SkyCity fell 6c to 268, and Fisher and Paykel Appliances fell 2c to 66.
After the market closed appliances said its rights issue raised $142.9 million.
Tourism Holdings was unchanged at 46 after announcing a company-wide pay freeze.
Restaurant Brands rose 1c to 103 on a day it held its annual shareholder meeting. There were "quite reasonable noises" coming from the company, Mr Williamson said.
Ebos rose 15c to 525, Mainfreight rose 5c to 430, NZOG rose 4c to 159 and NZX rose 6c to 756. Lion Nathan rose 10c to 1440.
The Warehouse, which launched an online shopping site today, rose 4c to 374.
APN News rose 12c to 187 and Hallenstein Glassons rose 10c to 255.
Turnover was worth $89.67 million. There were 49 rises and 29 falls among the 114 stocks traded.
The US market rallied on relief Federal Reserve chairman Ben Bernanke withstood a barrage of pointed questions from Congress on the Bank of America-Merrill Lynch deal relatively unscathed.
Retailers and home builders led stocks higher for much of the session, helped by a surprising profit increase from retailer Bed Bath & Beyond Inc. Energy companies' shares also rose as oil prices climbed above US$70 ($110) a barrel.
The Dow Jones industrial average jumped 172.54 points, or 2.08 per cent, to 8472.40, snapping a four-day losing streak. The Standard & Poor's 500 Index gained 19.32 points, or 2.14 per cent, to 920.26. The Nasdaq Composite Index advanced 37.20 points, or 2.08 per cent, to 1829.54.
- NZPA
<i>NZ stocks:</i> Market closes flat, other markets rise
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