NZ stocks: Sharemarket makes early gains following lead from overseas

12.30pm

Following a mostly positive lead from overnight activity on overseas markets the New Zealand sharemarket posted tidy gains in early trade this morning.

By 11.30am the NZSX50 gross index had risen 16.01 points or 0.77 per cent to 2099.33, while the NZSX40 capital index was up 15.1 points or 0.74 per cent to 2064.35.

Operator Ben Lowe of Greenslades said the market was off to a good start today.

"It's pretty positive stuff with the Dow Jones up 115 odd points and going through that barrier of 9000 again."

In New York, stocks finished sharply higher yesterday pushing the blue-chip Dow to close above 9000 for the first time since last August, after a report showing a rebound in the vast US services sector raised investors' confidence that an economic recovery is under way.

The Dow Jones industrial average finished up 116.03 points at 9038.98.

The good news from New York helped Britain's FTSE 100 share index pull out of a mostly flat session and close just under a fresh six-month high.

The benchmark index ended 10.9 points higher at 4,126.6, just shy of Monday's 4129.3 six-month closing high.

"We've got the filter through," Mr Lowe said.

But although the New Zealand sharemarket's indices were up this morning, shares in the stock exchange itself were down on its own board.

Shares in NZX, formerly the New Zealand Stock Exchange, which were listed yesterday were down 30c to 390 by midday.

Elsewhere on the market shares in the nation's biggest private energy provider Contact Energy rose 5c to reach an all time high of 475.

Mr Lowe said the banks listed on the NZX were also having a strong day.

At noon ANZ was up 10c to 2150, and Westpactrust was up 16c to 1801.

"I think the movement this morning has been more just the fact that the currency is coming back in relation to the Aussie dollar," Mr Lowe said.

Turnover by 11.30am was $36.5 million on 13.2 million shares traded, and market kingpin Telecom was the most traded stock with 3.3 million shares worth $16.8 million changing hands.

Stocks to rise in trading by 11.30am this morning included Air NZ up 2c to 51, Auckland International Airport up 5c to 555, Briscoe up 3c to 203, Carter Holt Harvey up 3c to 165, Fisher & Paykel Appliances up 19c to 1235, Fisher & Paykel Healthcare up 5c to 1130, Fletcher Building up 5c to 365, Independent News Ltd up 3c to 426, Mainfreight up a cent to 129, Ports of Auckland up 5c to 715, Port of Tauranga up 11c to 436, Promina up a cent to 243, Ryman Healthcare up 2c to 182, Sky City up 8c to 865, Telecom up 3c to 510, Telstra up 3c to 512, Tower Group up 4c to 159, Tranz Rail up 3c to 83, and the Warehouse up 3c to 438.

Stocks to fall included Infratil down 3c to 200, Sky TV down 3c to 445, Tourism Holdings Ltd down 3c to 100, and TrustPower down 5c to 440.

There were 48 rises and 22 falls among 110 stocks traded.

- NZPA