NZ stocks: Market follows US surge

The share market staged a broad-based rally today after United States stocks posted their best day in four months, following comments from Citigroup that it was profitable in the first two months of 2009.

The US market also got a boost, lifting shares off 12-year lows, after a key lawmaker said he expected the reinstatement of a rule that hinders short-selling.

The benchmark NZSX-50 index closed up 34.801 points, or 1.413 per cent, at 2497.507. That was down on the 53.83 point gain in early trading.

Turnover was worth $101.2 million. There were 60 rises and 26 falls among the 110 stock traded.

"We opened higher and drifted off," said Stephen Wright at ASB Securities.

"Obviously we have followed on from overseas markets. Turnover is up on what is usual but not outstanding," he said.

Sentiment was still cautious, he said.

Only nine of the top 50 stocks were down today, indicating the broadness of the rally.

Among leading stocks, Fletcher Building was up 11c to 526 and Telecom up 3c to 238, but Contact Energy fell 4c to 556.

Fisher & Paykel Appliances rose 3c to 54 as the market awaited news on who its cornerstone shareholder will be.

Big gains were made by dual-listed banks, with AMP up 30c to 520 and ANZ up 65 to 1700.

The Warehouse was up 17c to 352 ahead of earnings report tomorrow.

SkyCity continued a recent run, rising another 14c to 266. Guinness Peat rose 2c to 65. Methven rose 3c to 100, NZX 15c to 540 and Air NZ 2c to 82.

SkyTV rose 10c to 380 and Ebos 9c to 448. Cavalier rose 2c to 135. NZ Refining rose 11c to 671.

Tenon rose 10c to 60, Vector fell 2c to 217 and Team Talk rose 5c to 200.

In the US financial listings led the huge rally, rising 16 per cent after Citigroup Inc chief executive Vikram Pandit stated in a memo to staff that he was confident about its capital strength.

The Dow Jones industrial average gained 379.44 points, or 5.80 per cent, to 6926.49. The Standard & Poor's 500 Index climbed 43.07 points, or 6.37 per cent, to 719.60. The Nasdaq Composite Index jumped 89.64 points, or 7.07 per cent, to 1358.28.

This was the Dow's largest percentage gain since November 21, 2008, and its fifth-biggest percentage increase since December 31, 2007.

- NZPA