NZ market rises along with global trend

The New Zealand sharemarket rallied along with markets around the world today after European policy makers set up massive defences to protect the euro and restore confidence in financial markets.

Investors applauded what was seen as a co-ordinated effort to contain Greece's debt crisis to prevent worries about it derailing the global economic recovery.

New Zealand's benchmark NZX-50 index closed up 11.778 points, or 0.373 per cent, at 3170.624. Turnover was worth $111.94 million. There were 47 rises and 38 falls among the 107 stocks traded.

"All is looking a lot better in the world. The European Union statement was taken very positively. That has led to a gain for our market," said Ross Cuthbert, an adviser at Craigs Investment Partners.

He said the Australian market had a strong bounce and futures prices indicated a bounce in the United States market tonight.

IG Markets said the package was scant on details and asked why it had not been put together last week. It would be crucial to see if gains were maintained.

Even with the euphoria, Fletcher Building closed unchanged at 795 and Telecom fell 2c to 211, not far off its record low of 207. Vodafone unveiled an alliance with Canadian company Axia today to bid for the Government's ultrafast broadband project.

Contact Energy rose 5c to 612 and SkyCity rose 4c to 304. SkyTV rose 7c to 481 and NZOG rose 3c to 150.

Also gaining were ANZ up 60c to 2900, Westpac 101 to 3131 and Tower 3c to 195.

NZ Farming Systems Uruguay rose 2c to 39. Comvita jumped 19c to 250, while Restaurant Brands firmed 2c to 224 after the New Zealand Herald reported the company would still like to sell its Starbucks chain.

The Warehouse rose 6c to 368 and Kathmandu rose 4c to 217.

Fisher & Paykel Appliances fell 1c to 62 after announcing non-cash charges for asset impairments. Guinness Peat Group fell 3c to 85 after the company told shareholders they would have to wait longer for a promised "value return".

- NZPA