KEY POINTS:
The New Zealand stock market soared today as much as it plunged yesterday and more volatile trading is in prospect until the US beds down a solution to its financial crisis.
The NZX-50 index rose 97.745 points, or 3.163 per cent, to 3187.961, having fallen 98.3 points on
Tuesday.
The market remains hostage to moves on Wall Street and brokers said that while that may be frustrating it was understandable because US issues have global implications.
"At the moment the stock market is just recovering after being knocked down quite savagely yesterday," said Barry Lindsay, research manager at First NZ Capital.
The Dow Jones industrial average rose 4.68 per cent on Tuesday in its best day for six years, a day after its biggest fall since just after the 1987 stock market crash.
The recovery helped push the Japanese and Australian share markets higher today though many Asian markets were closed for holidays, including China, Hong Kong and Singapore.
Mr Lindsay said the fall in Wall Street was so dramatic it sent a strong message to those putting the US bailout together about the consequences of not getting the job done.
Lower share prices also attracted buyers.
The focus in New Zealand will turn to the Telecom annual meeting tomorrow morning where a US fund is putting up rival board candidates.
Mr Lindsay said the company was likely to update the market but given that it reports quarterly it was unlikely to be a surprise. Still, it would be an opportunity to assess how a large corporate viewed the current operating environment. Telecom rose 9c to 282.
Fletcher Building rose 51c, or 7.67 per cent, to 716, while Contact rose 12c to 794.
Michael Hill International, which has shops in North America, gained 11c, or 16.42 per cent, to 78. Auckland Airport rose 9c to 204.
Fisher & Paykel Healthcare was up 8c to 301 and sister stock F&P Appliances was up 6c to 166.
Pike River was up 10c to 170 as it reported progress on a rail connection to its mine.
PGG Wrightson rose 29 to 189 after it revealed the credit crisis is crunching its meat industry deal.
Sanford eased 5c to 580 and SkyTV rose 7c to 424. GPG rose 7c to 129. The Warehouse rose 17c to 319.
There were 77 rises and 18 falls. Turnover was worth $134 million.
- NZPA
