NZ sharemarket opens firmer

Photo / Paul Estcourt

The New Zealand sharemarket firmed in early trading today shortly after one of its blue chip stocks reported its annual result and taking heart from a positive session on Wall Street.

Fletcher Building reported 4 per cent falls in both net profit from ordinary activities and sales, but said it improved performance through cost cuts. Final dividend of 15c per share is up 1c on last year.

The benchmark NZX-50 index gained 14.82 points or 0.49 per cent to 3021.37 in the first 15 minutes of trading today.

Sky City, which also increased its final dividend when reporting a 12 per cent rise in underlying full year net profit yesterday, inched up 1c to $2.90 after shedding 10c yesterday.

Market operator NZX, which announced a 91 per cent dive in first half profit yesterday, eased 2c to $1.39 early today after losing 3c ahead of its result.

Telecom gained 2c to $2.09 and Contact Energy rose 4c to $5.78.

Other leading stocks to rise in early trading included Sky TV, up 4c to $4.99, Fisher & Paykel Health 2c to $2.82 and Freightways 2c to $2.93. The latter had put on 6c yesterday after it said its second half was an improvement over the first six months.

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US stocks rose overnight after earnings from retail giants Wal-Mart and Home Depot topped expectations and a US$39 ($54.8) billion takeover bid in the agriculture sector bolstered confidence in the corporate outlook.

The Dow Jones industrial average was up 103.84 points, or 1.01 per cent, at 10,405.85. The Standard & Poor's 500 Index was up 13.16 points, or 1.22 per cent, at 1092.54. The Nasdaq Composite Index was up 27.57 points, or 1.26 per cent, at 2209.44.

- NZPA