KEY POINTS:
A more positive tone returned to the New Zealand sharemarket today, reflecting solid results and a good day on Asian bourses.
The NZSX-50 index rose 0.5 per cent or 19.11 points to 3562.37, partially offsetting yesterday's 0.8 per cent fall
Turnover was robust at $117 million on 59
rises and 39 falls.
ASB broker Stephen Wright noted that investors had had positive leads, both from overseas and local company results.
"Although the markets are weak, the companies themselves are showing no signs that times are tough."
Auckland Airport shook off a 13 per cent slide yesterday, rising 6c to 251. Volume was low but Mr Wright said it appeared the wave of selling had finished, following concern that new tax rules might stymie the Canadian partial takeover bid for AIA.
Elsewhere, recovery was also evident in stocks like Sky City, which lost 10c after a seemingly positive result on Monday but was up 4c to 390 today.
Telecom was up 3c to 389 on turnover worth $52m, after yesterday hitting its lowest level since December 1993. The stock went ex-dividend by 7c on Monday.
But there seemed no reason for Fletcher Building falling 17c to 958, wiping out yesterday's gains. Mr Wright said both the Australian and US markets, which Fletcher is exposed to, were positive today, and the stock appeared to have hit a wall at $9.85 a few days ago.
The Warehouse ended flat at 615 after rising 14c on Monday on speculation that Woolworths would continue negotiations with the Red Sheds at the end of this month, despite the shadow of further court action.
Mainfreight followed a recent strong result with a 13c rise to 643 on low volume. Medical supplies company Ebos also rose strongly, up 15c to 500, after posting an 86.5 per cent rise in first half net profit yesterday.
Air NZ was flat at 176 but strongly traded ahead of its result on Friday.
Currency-sensitive F&P Appliances rose 5c to 261 and its healthcare twin rose 6c, also to 261 despite the kiwi dollar's rise to a post float high of US81.58c.
One of the worst performers was Allied Farmers, which fell 9 per cent or 14c to a year low of 140, despite reporting a 41 per cent rise in pre-tax interim profit.
Mr Wright noted there had only been two sellers.
In Australian, shares were up 1.1 per cent in mid-afternoon trade, as financials gained on easing credit worries, while record peaks for oil and gold boosted resource firms.
Overnight Wall St enjoyed another strong session with a share buyback and upbeat forecast from IBM pushing the Nasdaq up 0.75 per cent.
Climbing energy stocks also lifted the Dow Jones industrial index by 0.9 per cent, as oil rose past $101 a barrel.
- NZPA