The New Zealand sharemarket posted solid gains today, reflecting the ongoing rally in global equity markets.
In the US, stocks rose for a third day, hitting fresh 2009 highs in a broad-based rally following economic data that suggested a stronger-than-anticipated global recovery.
In New Zealand, there is also increasing confidence
the economy is turning up even though there it has much ground to make up and the high currency is a break to growth.
The rally in the local sharemarket was also across the board, with the number of stocks rising, at 57, more than double the 25 declines.
The benchmark NZSX-50 index closed up 35.214 points, or 1.13 per cent, at 3152.799. Turnover was worth $122.8 million.
Stocks exposed to economic cycles were among the gainers. Fletcher Building rose 19c to 837, Mainfreight rose 10c to 530, Steel & Tube rose 11c to 345 and Tourism Holdings rose 3c to 72.
Telecom started slowly but Stephen Wright at ASB Securities said it joined in the rally, rising 6c to 274.
The stock has shrugged off an announcement on government investment in ultrafast broadband that Telecom dubbed disappointing.
"It is still a bit mixed but not as mixed as it has been in recent days," Mr Wright said.
SkyCity rose from 323 to 329 and ended back at 322, down 1c.
Auckland Airport rose 5c to 180 and Hellaby rose 13c to 173.
Ebos fell 5c to 600, SkyTV fell 5c to 445.
PGG Wrightson was unchanged at 71 as investors await news on a capital raising. Pyne Gould Corp was also unchanged at 105.
A rise in the NZ dollar to 13 month highs had little impact on currency sensitive stocks. Fisher and Paykel Healthcare rose 7c to 322, GPG rose 1c to 84 and Sanford rose 5c to 500.
Westpac rose 35c to 3045, Tower rose 7c to 167 and ANZ rose 5c to 2795.
Contact rose 1c to 594 and TrustPower was unchanged at 750.
The Warehouse rose 2c to 415 and Air NZ rose 1c to 123.
Investors are waiting to see what dairy co-operative Fonterra says tomorrow about its capital structure.
US industrial output advanced for a second consecutive month in August, while a government report showed a bigger-than-expected drop in crude inventories last week, indicating higher demand.
The Dow Jones industrial average was up 1.1 per cent at 9791.71, the Standard & Poor's 500 Index was up 1.5 per cent at 1068.76, and the Nasdaq Composite Index was up 1.5 per cent at 2133.15.
- NZPA
