Market claws back up after early fall on quiet day

File photo / NZ Herald

The New Zealand sharemarket closed higher after clawing its way back up in a late rally yesterday, regaining ground lost as the benchmark NZX-50 index slumped for more than an hour to the levels seen late last week.

In a relatively quiet day, the NZX-50 index quickly lifted 7.88 points to 3347.39, after gaining 9.9 points on Friday, but shortly before 2pm profit-taking saw it slide back to 3340.72.

Then at 3pm buyers started to bring it back up to finish 8.856 points to 3348.36, a lift of 0.256 per cent.

The 64.9 million shares traded were valued at $173 million.

Among key shares, cornerstones stock Telecom gained 5c to $1.98.5 and Contact Energy fell 1c to $5.74, despite having been up 3c in early buying. Fletcher Building did better, falling 6c early in the day - reversing most of Friday's 8c gain - only to finish at $8.73, down 3c.

OceanaGold was up 6c to $3.40, Sanford added 4c to $5.00, Nuplex gained 6c to $3.12, Vector lifted 2.5 per cent, up 6c to $2.41 and Abano Healthcare fell 2c to $4.30.

In the United States, stocks gained after a week of heightened volatility on Friday, but investors were reluctant to make big bets because of turmoil in the Middle East and Japan's nuclear crisis.

The Chicago Board options exchange volatility index fell 6.4 per cent on Friday (local time) but was still up 23 per cent on the week.

Bank shares jumped as the Federal Reserve announced it will allow some US banks to boost or restart dividend payments, while the Bank of Japan bought billions of dollars to restrain a soaring yen and was followed by US and European central bank purchases.

The Dow Jones industrial average ended up 0.7 per cent at 11,858.52, the Standard & Poor's 500 Index was up 0.4 per cent at 1279.21 and the Nasdaq Composite Index was up 0.3 per cent at 2643.67.

The Dow fell 1.5 per cent in the week while the S&P was off 1.9 per cent and the Nasdaq, in its fourth straight down week, sank 2.6 per cent.

The Australian sharemarket closed higher after a late rally in the financial sector, brokers said, but caution remained as investors continued to digest news of fighting in Libya and the nuclear emergency in Japan.

The benchmark S&P/ASX200 index climbed 16.4 points, or 0.4 per cent, to 4642.8, while the broader All Ordinaries index gained 18.3 points, or 0.4 per cent, to 4734.1.

- NZPA