KEY POINTS:
The New Zealand sharemarket enjoyed a strong rally in contrast with a 16-month low on Friday.
By 5pm today the benchmark NZSX-50 index was up 2.5 per cent or 90.97 points to 3601.78 on a mild $88 million turnover. It was recovering from a 1.1 per cent fall on Friday when it touched a low of 3498 .
Brokers said the market was ignoring overseas markets and had strengthened during the day.
"I guess there's just some bargain hunters out, stocks like Rakon are extremely cheap," ABN Amro Craigs broker Bryon Burke said.
Rakon closed up 17c to 285 after falling to a year-low of 268 on Friday.
Also noteworthy was a rally in Fisher & Paykel Appliances, up 11c to 268 after hitting a year-low of 257 on Friday.
The company said in a 10-month update that revenues were up 2.2 per cent so far , although margins were looking flat due to the strong currency, and that due diligence was being done on its finance firm.
ABN Amro Craigs broker Bryon Burke said the report was better than what some investors might have been expecting.
"The market was obviously in a mood to take it positively."
Gains were across the board, including hard-hit stocks like Fletcher Building, up 35c to 935. Telecom rose 4c to 412 and Contact edged up 5c to 750.
Auckland International Airport, reported to be going to review its advice shareholders reject a partial offer from a Canadian pension fund, bounced strongly by 23c to 276.
Brokers noted the apparent "softening stance" of the airport's major shareholders had revived M&A interest.
Opus International Consultants was up 9c to 164, one cent below its issue price. The majority Malaysian-owned company which was floated last October today reported an annual net profit after tax up 6.5 per cent to $14.2 million.
Other shares to rise were The Warehouse up 19c to 591, Trustpower up 40c to 770, Steel & Tube up 21c to 336, Air NZ up 6c to 183, Ebos up 20c to 480 and Sky City up 17c to 410.
Cavalier Carpets rose 15c to 260 after reporting a 7 per cent rise in its December half year net profit.
In contrast, Australian shares were 0.7 per cent down in late trading after news that ANZ may face a US$200 million provision due to its exposure to a US insurer.
That hit the banking sector hard, dragging ANZ 90c lower to 2650 and Westpac down 50c to 2650.
In the US on Friday, the Dow Jones industrial index and the Nasdaq slipped on concerns about consumer spending after an index of consumer sentiment fell to a 16-year low and retailer Best Buy warned that shopper traffic dropped off after the holidays.
The Dow Jones industrial average was down 0.23 per cent at 12,348.21. The Standard & Poor's 500 Index was up 0.08 per cent at 1349.99. The Nasdaq Composite Index was down 0.46 per cent at 2321.80.
- NZPA
