Sharemarket posts modest gain

The New Zealand sharemarket rose for a second consecutive session, after the United States market pushed on, but volume is light ahead of the local reporting season.

The benchmark NZX-50 index closed up 8.036 points, or 0.268 per cent, at 3003.41. Turnover was worth $78 million. There were 48 rises and 32 falls among the 111 stocks traded.

"The market is up in reaction to a firm Dow Jones and Australian market today. There is little to focus on domestically, leaving investors on the sidelines," said Grant Williamson, director at Hamilton, Hindin, Greene said.

IG Markets said markets were mixed in Asia after the US market managed to post gains following stronger-than-expected building approval numbers and a stellar report from Apple.

Fletcher Building was up 1c to 770 on top of yesterday's 16c surge, while Telecom rose 3c to 196.

Contact Energy gained 3c to 579 early after rising 8c yesterday but ended down 6c at 570.

Air New Zealand rose 2c to 106 on news that annual tourist numbers exceeded 2.5 million for the first time. Auckland Airport was unchanged at 193.

OceanaGold rose 6c to 391 after saying further drilling results are the first indication of a new possible area of mineralisation at its Frasers underground mine in Otago.

Allied Farmers rose to 0.7c to 5.5 on news yesterday of a six month extension to its loan facilities. Affco was unchanged at 37, the price at which Talleys is bidding for the 23.46 per cent of the company it does not already own.

NZ Farming Systems Uruguay, which today appointed Grant Samuel to report on the bid by Singapore's Olam International, was unchanged at 54.

NZ Refining eased 11c to 315 after saying margins are improved but it is too early to call the trend of a sustained recovery.

Mainfreight rose 20c to 640, Hellaby rose 5c to 175, Nuplex rose 7c to 298 and Restaurant Brands rose 4c to 234.

ING Property rose 1c to 69, ING Medical Property Trust rose 1c to 121 and Goodman Property rose 2c to 93.

Pike River Coal fell 3c to 93 on a day the Government's retreat on mining in national parks received extensive media coverage.

In the US, stocks rose for a second consecutive day as investors willing to take a risk took advantage of buying opportunities after many stocks opened weaker.

Goldman Sachs Group rose 2.2 per cent as buyers materialised after an early selloff on news the investment bank's quarterly earnings tumbled 82 per cent, steeper than forecast.

The Dow Jones industrial average rose 0.7 per cent to 10,229.96, the Standard & Poor's 500 Index gained 1.1 per cent to 1083.48, and the Nasdaq Composite Index added 1.1 per cent to 2222.49.

Some market analysts said late buying during the regular session was driven in part by speculation that the Federal Reserve would take steps to spur lending by eliminating interest paid on excess bank reserves held at the Fed.

- NZPA