NZ market little changed on light news day

The New Zealand sharemarket ended little changed as general optimism about the global recovery failed to make a difference on the day.

The benchmark NZSX-50 index closed up 3.38 points, or 0.103 per cent, at 3271.568. Turnover was worth $52.7 million. There were 43 rises and 27 falls among the 105 stocks traded. The Australian stock market was equally tranquil.

Air NZ rose a cent to 121 on a day in which Qantas' discount airline Jetstar and AirAsia said they had formed an alliance to cut costs and reduce airfares. Tourism Holdings rose 4c to 85.

SkyTV rose 7c to 520 after confirming today that it has bought TVNZ's broadcast rights for this year's Commonwealth Games in India and will screen 12 hours each day live on its free-to-air channel, Prime.

Fletcher Building eased a cent to 801 even though approvals to build new homes in Australia jumped a surprisingly strong 5.9 per cent in November, suggesting a construction boom will foster growth in Australia.

Telecom was unchanged at 257 and Contact Energy rose a cent to 625.

The Warehouse rose 3c to 410 on a day in which Newmarket Business Association chief executive Cameron Brewer said The Warehouse's poor December result was not a reflection of the overall state of retail across the country.

Electronic payments processor Paymark said December was a mixed bag for retailers but speculated that a feel good factor about the economy helped boost spending on jewellery, dining out and hair care.

Retailers were mixed with Hallenstein Glasson up 1c to 336, Pumpkin Patch down 3c to 201, Kathmandu down 8c to 194, Postie Plus down 2c at 38. Hellaby rose 1c to 164.

NZOG fell 2c to 165 and NZ Refining eased 6c to 360.

Northport rose 5c to 180 and Port of Tauranga rose 4c to 714. SkyCity fell 3c to 340. Xero eased 2c to 160.

The S&P 500 and the Nasdaq rose on Tuesday as better-than-expected factory orders and a surge in vehicle sales at Ford Motor Co provided more evidence of an economic recovery, Reuters reported.

But a big decline in pending home sales, which fell in November for the first time in nine months, increased concerns about the housing market. That capped the broad market's gains and pushed the Dow industrials into the red a day after all three major US stock indexes rose to their highest levels in over a year. The Dow Jones industrial average fell 11.94 points, or 0.11 per cent, to end at 10,572.02. The Standard & Poor's 500 Index rose 3.53 points, or 0.31 per cent, to finish at 1136.52. The Nasdaq Composite Index crept up just 0.29 of a point, or 0.01 per cent, to close at 2308.71.

Ford Motor Co surged 6.6 per cent, hitting a 4-1/2-year closing high following its report that its December sales shot up 33 per cent year-over-year.

- NZPA