NZ stocks: Shares higher, but lack zest of offshore markets

The New Zealand sharemarket was broadly positive this morning, but lacked the zing seen in offshore markets overnight.

"It is a pretty muted response to the offshore markets where we saw pretty explosive rallies on comments that profits will meet or possibly beat expectations," Credit Suisse First Boston dealer James Snell said.

"There is not the follow-through buying that we usually have in response to those offshore markets.

"(Stocks) have been marked up a little bit but it's not big and it's not on big numbers either."

The benchmark NZSE-40 index posted a moderate 7.76 point - or 0.38 per cent - gain to 2053.58 by just after 11.30am.

Turnover was a light 13 million stocks, worth $44 million.

In contrast, US stocks racked up their biggest gains in more than two months overnight, after technology bellwethers Microsoft Corp and Motorola Inc infused Wall St with hope that corporate profits may be near a rebound.

A broad range of industry groups powered ahead in active trading as investors flocked back into stocks after a bruising round of earnings warnings sent the leading market indexes to a 12-week low on Tuesday.

The technology-rich Nasdaq Composite Index leaped ahead 103.70 points, or 5.26 per cent, to 2075.74, while the blue chip Dow Jones industrial average jumped 237.97 points, or 2.32 per cent, to 10478.99.

On the local front, with no real news in the market it was left to leading stocks Telecom, Sky City, The Warehouse and Fisher & Paykel to set the tone.

Telecom, viewed as a local market barometer, rose 2c to 525 on turnover worth $11.4 million, sending a clear message to other stocks that the only way to trade today was up.

Star performer Fisher & Paykel added 15c to 1310, testing another all-time high.

Sky City was up 5c at 1180 and The Warehouse added 5c to 535.

In all, rises outnumbered falls 51 to 11 among the 106 stocks traded.

Other stocks to gain ground by mid morning included Auckland Airport, up 6c to 353, Frucor, up 5c to 170, Fletcher Forests, up 1c to 31c, Genesis, up 10c to 400, Tranz Rail, up 5c to 405 and TrustPower, up 5c at 330.

Baycorp bucked the trend, sliding 10c to 1290, takeover target Montana was steady at 453 and Sky TV shed 5c to 325.

Air New Zealand A-shares were down 1c at 107, while its B-shares added 1c to 145. Air NZ is due to hold a news conference late this afternoon to update progress on talks in the past two days with Transport Minister Mark Gosche and officials.

Needing cash to buy new aircraft, the national carrier is seeking government approval for Singapore Airlines to lift its current 25 per cent stake in the airline.

- NZPA