NZ stocks: Shares follow global surge

New Zealand stocks forged ahead today following sharp rises in global markets on optimism over efforts by world leaders meeting in London to solve the economic crisis.

The benchmark NZSX-50 index closed up 28.677 points, or 1.109 per cent, at 2614.481.

That was off the best level of the day and a smaller gain than other markets.

Turnover was worth $82.76 million. There were 69 rises and 17 falls among the 11 stocks traded.

"We follow overseas moves but the market is just not as extreme," said James Smalley of sharebrokers Hamilton, Hindin, Greene.

He said this may because investment in the local market was less leveraged. There was some switching from blue chips into riskier stocks.

Fletcher Building added 5c to 590, with trading in the company's shares having resumed yesterday in the wake of a $406.5 million capital raising. The shares were placed at 535 compared to the 620 the shares were at before the trading halt.

Among leading stocks, Telecom was up 3c to 240 on solid volume and Contact Energy added 10c to 590.

Nuplex rose 1c to 34 and brokers said its underwritten rights issue was trading at a discount to the ordinary shares. This could be because of the large number of shares in the rights issue.

NZX lifted 20c early to 670 but was back at 660 by the close.

Trustpower gained 20c to 710, Mainfreight rose 12c to 412 and The Warehouse rose 5c to 359.

Fisher & Paykel Appliances eased 2c to 47. Fisher & Paykel Healthcare eased 9c to 306.

Ryman rose 4c to 142 on light volume. Port of Tauranga added 9c to 514, SkyCity rose 5c to 286 and Tourism Holdings rose 4c to 49.

Mr Smalley said a lot of investors who had been sitting on the side lines were finally coming back into the market.

"It not like a mass stampede back. People are still tentative but they like where the market is going," he said.

US stocks rallied for a third day on Thursday as more data pointed to a stabilising economy and changes to an accounting rule were seen as shoring up the volatile financial sector in the short term.

Stocks have surged in recent sessions as data increasingly pointed to an easing in the deep recession. The Dow is now on track for its best four-week rally since 1933.

The Dow Jones industrial average jumped 216.48 points, or 2.79 per cent, to 7978.08. The Standard & Poor's 500 Index rose 23.30 points, or 2.87 per cent, to 834.38. The Nasdaq Composite Index leaped 51.03 points, or 3.29 per cent, to 1602.63.

- NZPA