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Strong Start By NZ Sharemarket Fades

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Nov 24 NZPA - The New Zealand sharemarket started strongly but faded in the afternoon session as the Australian market weakened and as an initial pubic offer (IPO) by Synlait was pulled.

The benchmark NZSX-50 index closed down 5.363 points, or 0.172 percent, at 3107.613 points, having opened up 21.2 points.

Turnover was worth $69.5 million. There were 42 rises and 34 falls among the 117 stocks traded.

Asian sharemarkets slipped as investors shrugged off upbeat US home sale data and took a breather after recent gains. IG Markets said investors were spooked by weak commodity prices and speculation that Lloyds Banking Group will raise new equity at a deep 60 percent discount.

In New Zealand, there was disappointment when Canterbury dairy company Synlait pulled an IPO expected to raise $150 million.

Broker had said investors were keen for a listing from the sector.

But there was positive news from casino operator SkyCity with the announcement of the sale of its cinema business to Australian-based cinema operator Amalgamated Holdings.

SkyCity rose as high as 340 on the news but ended up 3c at 334.

Grant Williamson, director at Hamilton, Hindin, Greene said the market liked the company's focus on its core business.

Otherwise it was a relatively quiet day.

Pumpkin Patch was unchanged at 181 after telling its annual meeting that retail conditions in this country remained subdued.

Mr Williamson said there was uncertainty in the retail sector during the key Christmas trading period.

Michael Hill rose 1c to 61 and Kathmandu was unchanged at 215. The Warehouse rose 7c to 412.

NZ Refining Co rose 14.4c to 455 with its shares trading ex a bonus issue from today.

Infratil rose 5c to 155.

Fletcher Building fell 6c to 765 and Telecom fell 2c to 246.

Contact Energy fell 5c to 590 and TrustPower was unchanged at 745 on a day in which the Commerce Commission warned the two companies following an investigation into possible bid-rigging behaviour.

Hellaby fell 6c to 154, Restaurant Brands fell 4c to 144, Ebos fell 10c to 585 and SkyTV fell 7c to 466. Rakon fell 1c to 117.

Allied Farmers rose 5c to 31 after revealing that Australian company Resimac is its new investor.

Pike River Coal rose 2c to 101, Steel & Tube rose 6c to 294 and Freightways rose 7c to 317.

GPG rose 1c to 80. ING Property Trust rose 1c to 76 after its interim report. TeamTalk rose 6c to 235.

Auckland Airport, which released October operating statistics today, fell 2c to 183.

PGG Wrightson fell 3c to 64.

In the United States, stocks snapped a three-day losing streak as stronger-than-expected home sales fuelled optimism while a weaker US dollar boosted commodity-linked stocks.

The Dow Jones industrial average rose 1.29 percent to end at 10,450.95. the Standard & Poor's 500 Index was up 1.4 percent to 1106.24, and the Nasdaq Composite Index was up 1.4 percent to close at 2176.01.

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