KEY POINTS:
The New Zealand sharemarket rebounded off five-year lows today, as stocks in the United States rose more than 3 per cent to snap back from 12-year lows.
The benchmark NZSX-50 index closed up 12.292 points, or 0.494 per cent, at 2499.82. This was off its best levels.
There were 42 rises and 41 falls among the 115 stocks traded. Turnover was worth $78.8 million.
"The catalyst was finally a better day in the US," said Stephen Wright at ASB Securities.
The question investors had to ponder was whether it was a relief rally or not.
Still, when some of the local results that investors are fretting about are out of the way in the current reporting season sentiment may improve, Mr Wright said.
Some of the stocks which had been sold off in recent weeks were up today.
"On a better day the tide even lifts those stocks," Mr Wright said.
Fisher & Paykel Appliances was unchanged at 50c, Nuplex rose 20c to 135 and PGG Wrightson rose 5c to 72.
NZ Oil & Gas rose 2c to 122 after reporting a 30 per cent rise in half-year net profit to $54 million.
Port of Tauranga gained 15c to 530 after lifting half-year net profit 10 per cent to $22.5 million.
APN was untraded after releasing an annual profit with large writedowns of assets.
Among major stocks, Fletcher Building was unchanged at 535, Contact Energy was unchanged at 580 and Telecom added 8c to 246.
Sky City gained 4c to 264, The Warehouse rose 5c to 325, Hellaby rose 7c to 70 and TrustPower rose 11c to 711.
Freightways rose 5c to 278 and Pumpkin Patch rose 8c to 103. Auckland Airport rose 1c to 177 and Cavalier rose 6c to 140.
US stocks rose more than 3 per cent on Tuesday to snap back from 12-year lows, after Federal Reserve Chairman Ben Bernanke signalled that nationalisation of big banks was not at hand.
"Bernanke's comments lifted spirits," said Hugh Johnson, chief investment officer of Johnson Illington Advisors in Albany, New York. "A real fear that investors have had is that the public sector has become far too involved in the private sector."
The Dow Jones industrial average rose 235.76 points, or 3.31 per cent, to 7350.54. The Standard & Poor's 500 Index gained 29.69 points, or 3.99 per cent, to 773.02. The Nasdaq Composite Index added 54.11 points, or 3.90 per cent, to 1441.83.
- NZPA
