NZ stocks: Sharemarket gets lift from US rate cuts

11.40 am

The New Zealand stock market lifted today after a 50 point interest rate cut in the US sparked a late run on Wall Street.

By mid-morning the NZSE-40 capital index was up 17.43 points, or 0.93 per cent, at 1885.41, with turnover of 9.84 million valued at $23.72 million.

Topping turnover was Telecom, with $8.24 million worth of stocks changing hands.

"We've had a 50 basis point rate cut in the US which gave the Dow Jones a bit of a lift at the end -- it wasn't convincing but it tracked up 100 points at the end," DF Mainland's Greg Arnott said.

The Reserve Bank of New Zealand left the key Official Cash Rate unchanged at 5.25 per cent today following a surprise 50 point cut on September 19. The Reserve Bank of Australia is also looking at interest rates today.

"Most stocks are up a bit this morning ... Generally the market's feeling a bit better all round."

Among the top stocks to move were Contact Energy, up 5c at 347, Telecom, up 7c at 445, wood products company Carter Holt Harvey, up 3c at 152, and Auckland International Airport, up 4c at 339.

Mr Arnott said investors' fear of buying stocks normally associated with the arrival of October -- when most major sharemarket crashes have occurred -- was likely to be less marked this year.

"I think once the world gets the picture on the conflict, and things start to happen with America sorting things, you'll see some renewed buying interest in global market and things will start to correct themselves," he said.

"You can base that on historical facts -- with any war that has commenced the markets have gone up.

"For the superstitious, (October)'s always been a gloomy month, never buy stock in October has always been the rumour, but I think you might find it might buck the trend a bit because we had that during September.

"So it's hard to say, I don't think that October rule will strictly apply this time," Mr Arnott said.

The market was awaiting news from Air New Zealand regarding its rescue plan, although there was no scheduled announcement today.

On the down side, discount retailer The Warehouse was down 10c at 590 on very light turnover -- about 20,000 stocks on market, and 170,000 in off-market crossings. Brierley Investments lost 4c to 39, casino company Sky City lost 9c to 1111, Utilico was down 3c at 44, and Tranz Rail was down 5c at 435.

Baycorp rose 30c to 1180, Fisher & Paykel was up 20c at 1280, pay TV company Sky TV gained 10c to 320, Telstra was up 9c at 644, Fletcher Building rose 2c to 262, and rural services company Wrightson gained 3c to 103.

On Wall Street, the blue-chip Dow Jones industrial average rose 113.76 points, or 1.29 per cent, to 8950.59; the technology-packed Nasdaq Composite Index gained 11.86 points, or 0.80 per cent, to 1492.32; and the broader Standard & Poor's 500 Index added 12.78 points, or 1.23 per cent, to 1051.33.

- NZPA