Market continues upward trend

The New Zealand sharemarket followed through today after posting strong gains on Tuesday in response to a profit upgrade by casino company SkyCity.

The benchmark NZSX-50 index closed up 27.25 points, or 0.948 per cent, at 2900.443, topping the 2900 level for the first time since October last year.

This followed yesterday's 52.3-point gain and was achieved on turnover worth $115.5 million. There were 61 rises and 20 falls among the 116 stocks traded.

Sky City shares rose another 11c to 316, having closed yesterday 19c up for the day after the company said it expected to beat profit forecasts on improved fourth quarter income.

Net profit after tax for the 2009 year was now forecast in the range of $113 million to $116m.

Stuart Hardie, investment adviser at ABN Amro Craigs, said the market was still waiting for the earnings season.

"SkyCity really have exceeded expectations of what their earnings are going to be and that, coupled with Delegats the other day, has given a flavour that companies could, or might, exceed their profit guidance," he said.

Telecom rose 6c to 283 and Contact rose 5c to 608.

Energy companies were strong with TrustPower up 8c at 750 and Contact up 5c at 608.

Fletcher Building was the standout among the losers on the day. It closed down 14c at 690. Mr Hardie put the weakness down to profit-taking and pointed out that the stock had risen from 640 at the start of the month.

"They've had an extremely good run," he said.

Investors purchased stock in the company at 535 in a share purchase plan in May.

Westpac fell 15c to 2490 and ANZ rose 3c to 2098.

Mainfreight rose 6c to 420 and Freightways rose 8c to 295, Ryman rose 4c to 161 and Cavalier rose 4c to 200. Hellaby rose 8c to 128.

APN rose 20c to 205.

Fisher and Paykel Appliances rose 5c to 75, which is a 7.14 per cent rise, and the healthcare stock rose 1c to 307.

In the United States, stocks rose as a solid profit from Caterpillar Inc eclipsed unease about the company's outlook for the current quarter, but the gains were limited as some investors paused following the recent earnings-fuelled run-up.

Trading was choppy, with the broader market initially charging higher after the open and the benchmark S&P 500 hitting a fresh 2009 intraday high as it extended its rebound from the 12-year closing low of early March.

The Dow Jones industrial average gained 67.79 points, or 0.77 per cent, to 8915.94. The Standard & Poor's 500 Index rose 3.45 points, or 0.36 per cent, to 954.58. The Nasdaq Composite Index added 6.91 points, or 0.36 per cent, to 1916.20 - a closing high for the year.

- NZPA