NZ stocks: Market continues recovery

The New Zealand share market continued yesterday's recovery but as the day went on it lost some momentum.

The benchmark NZSX-50 index closed up 22.058 points, or 0.893 per cent, at 2491.401, following on from a 51.4-point gain yesterday.

But at one point today the index was 2513.966.

From late yesterday share markets got a lift from anticipation of a big economic stimulus package this week in China.

Japan's Nikkei average climbed 2.7 per cent this afternoon on hopes the stimulus plan will boost machinery shares and the US and Australian markets were up as commodity prices rose.

In New Zealand, the very low prices of shares were attracting buyers but volume was thin.

Turnover was worth just $44.74 million. There were 59 rises and 17 falls among the 107 stocks traded.

"We had a good rises yesterday compared to Australia in particular and we've managed to maintain some momentum," said Stephen Wright at ASB Securities.

"The leading stocks are doing pretty well," he said. But he added that the market had come off its best levels.

SkyCity, which went ex a nine cent a share dividend today, fell 1c to 263.

Among the leaders Contact Energy was unchanged at 551 after earlier rising 12c, Telecom rose 8c to 246 and Fletcher Building rose 1c to 527.

Some smaller stocks, some of which have been sold heavily, were attracting support. Rakon rose 16c to 85, while Guinness Peat Group rose 6c to 63.

Ryman rose 2c to 122 and Tourism Holdings 4c to 54.

Nuplex fell 3c to 107 and continued to be volatile.

Hallenstein Glasson rose but then retreated to end unchanged at 205. Sanford rose 15c to 545 and SkyTV 6c to 385.

US stocks rallied on Wednesday, ending a five-day losing streak, as another Chinese stimulus package boosted commodity prices and encouraged investors to jump into energy and natural resource shares.

"The market has been down so long and gone to levels that a lot of investors thought were cheap or undervalued," said Hugh Johnson, chief investment officer of Johnson Illington Advisors in Albany, New York.

The Dow Jones industrial average rose 149.82 points, or 2.23 per cent, to 6875.84. The Standard & Poor's 500 Index gained 16.54 points, or 2.38 per cent, to 712.87. The Nasdaq Composite Index jumped 32.73 points, or 2.48 per cent, to 1353.74.

- NZPA