NZ Shares: Slight rise in early trading

The New Zealand sharemarket rose again slightly in early trade today.

New Zealand's benchmark NZX-50 index rose only 10.695 points - equivalent to 0.378 per cent - to 2842.05 points after opening.

This was on a par with the 12.3 points it was up at Wednesday's close, despite the fact that overnight sentiment in the USA markets had improved.

Reports on "stress tests" of 19 major US financial institutions are expected to show some big banks do not need further injections of capital and that shortfalls of capital at other banks may be less than expected.

The NZX-50 movements yesterday and early today trailed rises of 53 points on Tuesday and 46 points on Monday.

Turnover today in the first half hour of trading was 13.4 million shares, worth $40.2 million, including 6.08 million Telecom shares valued at $17.1m, 1.48m Fletcher Building shares valued at $10.2m, and 678,000 Sky City shares valued at $1.9m.

Telecom fell 5c to $2.78, in the wake of it agreeing to filter some of its cellphone transmissions after a dispute with Voadafone. The company's lawyers had previously told the High Court that emissions from transmitters from its new mobile phone network are within acceptable levels.

Fletcher Building continued falling, by 1c to $6.80, but Sky City rose 2c to $2.81.

Other falls included Rakon, down 4c to $1.55, Trustpower, down 5c to $7.25, and Steel and Tube, down 1c to $2.94.

Fisher and Paykel Appliances rose 4c to 65, and Ryman rose 5c to $1.60.

Tower rose 3c to $1.50, and the NZX company rose 5c to $7.70.

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US stocks rose as investors warmed to reports about the banking stress test results.

The Wall Street Journal reported that JPMorgan, the No. 2 US bank, does not need more capital under the US government stress test.

The Dow Jones industrial average rose 101.63 points, or 1.21 per cent, to 8,512.28. The Standard & Poor's 500 Index climbed 15.73 points, or 1.74 per cent, to 919.53, up 35 per cent on its low in early March.

- NZPA