The New Zealand sharemarket posted solid gains today against a backdrop of rebounding world markets.
The benchmark NZX-50 index jumped in the first 15 minutes by 104 points but couldn't hold the gains. The index closed up 58.493 points, or 2.177 per cent, at 2745.597.
The positive mood
followed an astounding advance on Wall Street on Tuesday, with the Dow soaring nearly 900 points in its second-largest point gain ever as late-day bargain hunters stormed the market. The Dow and the Standard & Poor's 500 index were each up nearly 11 per cent.
In New Zealand, the leading companies with big foreign shareholding bases got the biggest boost, but Telecom could not manage to stay in positive territory, closing down 6c at 221.
"We peaked just before Australia opened and the market drifted off," said ABN Amro senior dealer Bryon Burke.
"Sentiment is better today but we have seen a few false starts so investors are still showing a bit of caution," he said.
A rise in the New Zealand dollar today hurt some export stocks with Fisher & Paykel Healthcare down 2c at 295.
Michael Hill International, with its exposure to North America, was the biggest percentage gainer, up 15 per cent to 69c.
Fletcher Building jumped 8c to 561 and Contact Energy was up 51c to 715.
Guinness Peat rose 4c to 94. The Warehouse rose 17c to 382 and Goodman Fielder was up 8c at 180.
SkyCity rose 8c to 318 and SkyTV rose 8c to 365.
Mainfreight fell 16c to 530 and Sanford fell 3c to 552.
NZOG rose 4c at 125 after expressing optimism about its position at its annual meeting.
Hellaby Holdings fell 15c to 165 and Rakon fell 2c to 180.
PGG Wrightson fell 5c to 159 ahead of its annual meeting tomorrow.
Investors worldwide snapped up stocks after posting huge declines Monday on economic worries.
The Dow rose 889.35, or 10.88 per cent, to 9065.12. That was its second-largest point gain, coming after the 936 points the Dow jumped on October 13.
Broader stock indicators also surged. The Standard & Poor's 500 index rose 91.59, or 10.79 per cent, to 940.51, and the Nasdaq composite index rose 143.57, or 9.53 per cent, to 1,649.47.
The Fed is expected to cut its target fed funds rate by half a point to 1 per cent.
- NZPA
