10.30am
The sharemarket spurted ahead nearly 1 per cent in early business despite the Reserve Bank (RB) today raising interest rates for the sixth time this year.
It was RB Governor Alan Bollard's signal that the tightening phase was over that had investors reaching for their cheque books.
He said current monetary settings
were doing enough to ensure price stability.
UBS Warburg broker Paul Nicholson called it a "relief rally".
"Yes, we have another rate rise, but Dr Bollard appears to have sent signals that, all other things being equal, this will be the last for a little while, and the market appears to have taken heart from that."
He said it was great that Dr Bollard felt he could do that -- "it's good for the markets, hopefully good for the economy and good for the country".
Volume was light at $27 million in the first quarter of an hour. Mr Nicholson said there appeared to have been "structural selling" during a seven session losing streak that was broken yesterday.
The benchmark NZSX-50 index was up 23.93 points up at 2802.86, while the NZSX-All capital index was 6.68 points at 928.64.
Exporters were expected to do well as the kiwi dollar slumped against the US and Australian dollars. The currency's fall meant New Zealand stocks are cheaper for overseas investors.
Top stock Telecom led the market up with a 7c gain to 582.
Fletcher Building recovered from a 10c fall yesterday and 19c the day before, with an 8c gain to 540.
Other good gains were posted by: Auckland Airport, 8c to 719, AMP, 8c to 680, Promina, 8c to 495, Fisher & Paykel Healthcare, 8c to 288, Fisher & Paykel Appliances, 6c to 404, Carter Holt Harvey, 3c to 214 and Tower, 4c to 503.
GPG regained the 5c it lost yesterday to 205 following news that its British thread firm Coats was fined 30 million euros ($56 million) for manipulating the European clothing accessories markets it the 1990s. GPG said today it would appeal the fine.
Air New Zealand rose another 2c to 159 today to add to yesterday's 4c gain.
At the AGM in Christchurch yesterday the company announced a slight profit downgrade - to $220m against $243m last year - and a one-for-six capital raising. The $186m capital raising was slightly less than expected.
While not unexpected, the fact that government was supporting it to the tune of $150m was "a small positive", according to ABN AMRO Craigs institutional dealer Mike Hare.
Wall Street also had a good night last night. The Dow Jones industrial average ended up 113.55 points, or 1.15 per cent, at 10,002.03. The Standard & Poor's 500 Index added 14.31 points, or 1.29 per cent, at 1,125.40. The technology-laced Nasdaq Composite Index rose 41.20 points, or 2.14 per cent, to 1,969.99.
- NZPA
10.30am
The sharemarket spurted ahead nearly 1 per cent in early business despite the Reserve Bank (RB) today raising interest rates for the sixth time this year.
It was RB Governor Alan Bollard's signal that the tightening phase was over that had investors reaching for their cheque books.
He said current monetary settings
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