NZ Shares: Local market off to a flying start

The New Zealand sharemarket is off to a flying start after the long weekend in the wake of rallies in stock markets around the world on improved global factory activity.

Among the leading stocks in this country, Fletcher Building was the standout performer early, gaining 19c or almost 3 per cent to $6.69, on top of Friday's 20c gain. Contact Energy was up 8c to $5.80, and Telecom rose 3c to $2.54.

Around 10.15am the benchmark NZX-50 index was up 27.91 points, or 1 per cent, to 2792.09, building on Friday's 42.2-point spurt.

Tower shares were up 8c to $1.76, following Friday's 11c gain after reporting a rise in interim underlying profit of 5 per cent to $21.5 million.

Fisher & Paykel Appliances was up 6c to $1.16, Sky TV lifted 5c to $4.15, Steel & Tube was up 5c to $3.00, NZ Oil & Gas gained 4c to $1.64, Auckland International Airport gained 3c to $1.63, Freightways was up 2c to $3.02, and Guinness Peat Group lifted 2c to 78.

F&P Healthcare fell 4c early to $2.86, Sky City fell 3c to $2.83, and Mainfreight eased 2c to $4.50.

Pike River Coal fell 5c to $1.18, after a 15c rise on Friday led to an inquiry from NZX, which also pointed out the 3.3m shares in Pike River traded on Friday was a "significant" increase from usual.

Pike River said it had no explanation for the increase.

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In the United States, stocks rose as reassuring economic data reinforced hopes that demand will stabilise.

Data showing the US manufacturing sector contracted in May at a slower rate than expected fuelled hopes the US recession that began in December 2007 is moderating.

Investors were also encouraged by signs of manufacturing stabilisation from China, with demand from emerging markets for commodities and other resources seen leading a revival of global growth.

Meanwhile, General Motors' long-expected bankruptcy filing ended uncertainty about the automaker's fate.

The Dow Jones industrial average shot up 2.6 per cent to 8721.44, the Standard & Poor's 500 Index gained 2.6 per cent to 942.87, and the Nasdaq Composite Index jumped 3.1 per cent to 1828.68.

- NZPA