KEY POINTS:
The sharemarket started the new financial year with a nearly 2 per cent gain, outperforming the Australian market, as buying interest returned after a Wall Street rally.
The NZSX-50 benchmark index closed up 63.1 points, or 1.8 per cent, to 3533.56 on turnover totalling $118.9 million.
"I think
we are seeing a fair amount of buying in reaction to a weaker NZ dollar which has been happening for a few days now, well under the US80c level," said Hamilton Hindin Greene partner Grant Williamson.
"We're certainly seeing some retail bargain hunting in the marketplace, looking at some of the undervalued stocks."
Top stock Telecom rose 10c, or 2.7 per cent, to 384 after news that Russ Houlden had been appointed chief financial officer, a position left vacant for seven months.
Mr Houlden had previously worked for BT, where Telecom chief executive Paul Reynolds also came from.
Telecom lost 9c yesterday after the Government approved its proposal for separating the company into three units.
Second ranked Fletcher Building jumped 36c, or 4.3 per cent, to 875, while Contact Energy was up 11c at 810.
Fisher & Paykel Healthcare was up 2c at 295, F&P Appliances rose 7c to 242, Sky City was up 11c at 380, Auckland Airport gained a cent to 229, and top-10 newcomer Infratil was up 2c at 215.
The day's biggest gainer was Auckland-based high technology manufacturer Rakon, which surged 14 per cent, or 40c, to 325 after a presentation to analysts. The exporter also benefits from a lower currency.
Also on the rise were Hallenstein Glasson up 12c to 387, NZX up 24c to 750, Steel & Tube up 15c to 300, Mainfreight 8c higher at 603, and Cavalier up 5c at 260.
Just six of the top-50 stocks declined.
Vector, which made way in the top-10 for Infratil today, was down a cent at 171, Port of Tauranga lost a cent to 605, Sky TV was down 10c to 470, Ebos lost 15c to 475, Nuplex was down a cent at 614, and Property for Industry was down a cent at 124.
ANZ rose 35c to 2650, Westpac was up 50c at 2750, Lion Nathan gained 29c to 1027, and AMP rose 25c to 925.
Australia's S&P/ASX 200 Index was up 0.3 per cent at 5367, while Japan's Nikkei share average rose 1.6 per cent.
US stocks gained on Monday as a report showing surprisingly strong business activity eased worries about the economy, and a plan for regulatory overhaul raised hopes for calmer financial markets.
However, in after-hours trade, Lehman Brothers Holdings stirred fresh worries about financial stocks when the Wall Street investment bank unveiled a plan to raise as much as US$3 billion ($3.9 billion) in capital to bolster its balance sheet.
- NZPA
