NZ stocks: Market starts week with slight gain

The New Zealand share market started the new week strongly though gains were eroded as the day went on.

The benchmark NZSX-50 index rose 20.939 points, or 0.83 per cent, to 2544.333, having reached a high of 2562.928 during the session.

Turnover was worth $72.8m. There were 57 risers and 32 falls.

The knowledge that United States share market had its best week since November last week helped.

"The market has just drifted back as Asian markets didn't really take off," said Stephen Wright at ASB Securities.

Investors are assessing bids for their money from companies raising capital and keeping an eye on statements about corporate banking arrangements.

Pike River rose 1c to 81 after announcing its right issue was fully underwritten and had institutional support.

Nuplex stock was halted today as it tried to raise $110m in a book build process.

Among leading shares, Fletcher Building was up 10c to 555. The NZ Herald reported today that the company could get a boost from government payments to insulate homes in Australia.

Contact Energy gained 10c to 577 and Telecom eased 6c to 228.

Briscoe Group was unchanged at 62 after reporting a 48.2 per cent drop in profit but the company said it has cash in the bank.

Among the risers were stocks with high dividend yields. Cavalier Corporation was up 9c to 144, Hallenstein Glasson was up 8c to 205 and Hellaby was up 2c to 47.

Fisher & Paykel Appliances eased 2c to 49 after saying on Friday it has temporary funding from banks.

Sky City was up 3c to 280 after saying total revenues for January and February are marginally ahead of the same period last year.

The Warehouse rose 5c to 355.

US stocks scored their best week since November on Friday (local time) as a broker upgraded Merck & Co, saying its deal to buy a rival was shrewd, and Citigroup said it did not need any more government aid.

The Dow Jones industrial average gained 0.75 per cent to 7223.98, the Standard & Poor's 500 Index climbed 0.77 per cent to 756.55, and the Nasdaq Composite Index added 0.38 per cent to 1431.50.

For the week, the Dow rose 9 per cent, the S&P 500 climbed 10.7 per cent and the Nasdaq advanced 10.6 per cent.

- NZPA