NZ Stocks: Market back in black as key index turns positive

12.00pm

The New Zealand sharemarket launched into today's session in a positive vein, with positive direction coming from the United States and Britain.

By late morning the benchmark NZSX-50 gross index was up 0.26 per cent, or 5.58 points, at 2176.83, while the NZSX-40 capital index was up 0.31 per cent at 2114.12.

Market leader Telecom regained some ground this morning, trading up 4c at 516.

On Wall St, stocks got back to work after holiday trade on Thursday and Friday, with the Nasdaq lifting to its highest close in almost 14 months, while London's FTSE-100 closed at a two-week high.

The Dow Jones industrial average closed up 1.62 per cent at 9216.79; the broad Standard & Poor's 500 gained 1.91 per cent to 1004.50; and the Nasdaq Composite climbed 3.47 per cent to 1721.25.

Ian Witters of ASB Securities said the New Zealand market was benefiting from improved sentiment overseas.

"Telecom's up strongly, there's been quite a lot of talk overseas of companies looking to increase their IT (information technology) spending, and Telecom's benefited from that," Mr Witters said.

"(US) corporates are indicating they see things turning and I think New Zealand has followed on from that. It's good because New Zealand will benefit from an improving world outlook," he said.

Carter Holt Harvey rose 1c to 176, albeit on small volume, Auckland International Airport gained 2c to 592, AMP rose 7c to 597, Fletcher Forests continued its rise, up another 1c to 119, and major exporter Fisher & Paykel Appliances gained 7c to 1302 despite the New Zealand dollar broaching 60 US cents yesterday.

Tranz Rail was up 1c at 94 as Toll Holdings' 95c per share takeover bid looked one step closer to succeeding, Telstra gained 2c to 512, and Independent Newspapers Ltd was up 1c at 425.

Fast food retailer Restaurant Brands was down 4c at 135 after news this morning that chief executive Jim Collier will resign in August.

Contact Energy lost 7c to 483, Baycorp Advantage was down 2c at 163, NZX lost 8c to 462, meat exporter Richmond was down 2c at 312, and casino company Sky City reversed an earlier 5c climb to lose the same amount, trading at 915.

Financial services company Tower gained 6c to 173 while key shareholder Guinness Peat Group was unchanged at 158.

There were 39 rises and 24 falls on the 102 stocks traded.

Turnover of 13.34 million stocks, valued at $27.37 million, was topped by Telecom's $10.83 million.

- NZPA