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The New Zealand share market closed higher but off its best levels on the day central bank governor Alan Bollard slashed interest rates.
The 150 basis point cut in the Official Cash Rate to 3.5 per cent was good news for equities, which look relatively more attractive investments in comparison to fixed interest, and the market opened up more than 1 per cent.
But there was no follow through and the market was drifting, though still in positive territory, in afternoon trading.
The benchmark NZSX-50 index closed up 22.217 points, or 0.809 per cent, at 2770.118. Volume was worth $121 million. There were 65 rises and 23 falls.
"The market got off to a hiss and a roar but tailed off from midday," said Stuart Hardie, investment adviser at ABN Amro Craigs.
There was good volume in Telecom in pre-opening trading again and the market leader ended up 6c at 266.
NZX rose 62c, or 12.84 per cent, to 545 after announcing the sale of its TZ1 Registry to Markit Group, receiving consideration of $66.55 million of Markit shares.
"On the surface it looks like an amazing deal," Mr Hardie said.
NZ Refining rose 9c to 620 and released operating statistics today.
Steel & Tube rose 14c to 285, Fletcher Building rose 4c to 552.
Air NZ rose 1c to 92 and Guinness Peat rose 2c to 85. TrustPower rose 14c to 744. Fisher & Paykel Appliances eased 2c to 128 and the healthcare stock rose 1c to 333. Tourism Holdings eased a cent to 67.
The Warehouse eased 12c to 360 and Infratil eased 3c to 176. Sanford was unchanged at 540.
Mainfreight eased 2c to 438 and Port of Tauranga eased 2c to 585.
US stocks rose on Wednesday, capping the S&P 500's longest winning streak since November, as financial stocks soared on optimism the Obama administration was making progress on a plan to relieve banks of money-losing assets.
Stocks initially added gains following the Federal Reserve's statement that it is prepared to buy long-term US government debt, but the boost faded upon the realisation that the Fed's purchases won't be made any time soon.
Financial stocks stood out, with JPMorgan among the Dow's top advancers with a gain of 10.4 per cent. Bank of America climbed nearly 14 per cent, while Citigroup shot up more than 18 per cent.
The S&P financial index rose 13 per cent on reports that plans were advancing to create a "bad bank" that would mop up assets whose worth has plummeted, and in turn help revive lending to consumers and businesses.
The Dow Jones industrial average finished up 200.72 points, or 2.46 per cent, at 8375.45. The Standard & Poor's 500 Index climbed 28.38 points, or 3.36 per cent, to 874.09. The Nasdaq Composite Index ended up 53.44 points, or 3.55 per cent, at 1558.34.
- NZPA
