NZ stocks: Market comes to life ahead of close

The New Zealand share market put on a late run to close with respectable gains, given the price of leader Fletcher Building was down.

The benchmark NZSX-50 index closed up 16.562 points, or 0.645 per cent, at 2585.804, turning around a weak opening as the Australian market also strengthened.

Turnover was worth a healthy $112.38 million. There were 44 rises and 26 falls.

The event of the day was the resumption of trading of Fletcher Building shares in the wake of a $406.5m capital raising.

Brokers said the Fletcher Building price was always going to be weaker because the shares were placed at 535 compared to the 620 before the trading halt.

"The placement was a great success but there was also going to be some weakness," said Stephen Wright at ASB Securities.

Some people might be selling at current levels to take them up at 535, he said.

"It was great that the market absorbed the placement," he said.

Kiwi Income Property Trust was also down 4c to 92 after completing a $50m institutional placement at 87.9c per unit.

Air NZ rose 2c to 92 after 250 flight attendants dropped a strike plan timed for Easter.

Telecom rose 7c to 237, helping the index higher.

Contact Energy rose 24c to 580 and Vector rose 4c to 218.

Nuplex rose 27c to 33 as its shares began trading ex a rights issue.

APN News rose 11c to 150 on tiny volume. Hellaby eased 1c to 49 and Lion Nathan eased 30c to 960.

TrustPower eased 15c to 690. The Warehouse rose 6c to 354, Tower rose 8c to 133 and SkyCity rose 6c to 281.

US stocks climbed on Wednesday as factory and home sales data raised hopes the economic downturn is moderating.

The data was enough to counter a report that showed US private-sector job losses accelerated in March to 742,000, heightening concerns ahead of the government's monthly payroll numbers on Friday.

The Dow Jones industrial average gained 152.68 points, or 2.01 per cent, to 7761.60. The Standard & Poor's 500 Index added 13.21 points, or 1.66 per cent, to 811.08. The Nasdaq Composite Index climbed 23.01 points, or 1.51 per cent, to 1551.60.

- NZPA