NZ stocks: Market gains despite sharp Wall St drop

12.00pm

The sharemarket gained ground today in morning business despite a sharp fall on Wall Street.

Brokers said the local market had not ridden Wall Street's rises in the past month and it was consistent not to take the slide down.

The NZSE-40 capital index was up 6.05 points at 2076.49 at 11.30am on light volume of turnover of just under $21.6 million.

United States stocks fell as a wave of technical selling late in the day combined with investor doubt that the end of the US recession will bring a swift revival of growth in corporate profits.

The Dow Jones industrial average fell 145.44 points, or 1.39 per cent, to 10,282.23, while the Nasdaq composite dropped 38.91 points, or 2.10 per cent, to 1812.48.

Growing hopes the United States economy is emerging from its slump helped bolster stocks earlier this month, but investors want to see that strength filter through to corporate profits.

The local market was bolstered by the latest consumer confidence survey which showed a further revival since the post September 11 slump.

Most of the index gain came via Telecom which rose 9c to 495.

None of the other leaders had significant moves.

Carter Holt Harvey was off 2c at 196, Contact was down 3c to 390, F&P Appliances was off 4c at 901, while Fletcher Building was up 1c at 288, Sky City up 8c to 585 and Independent Newspapers was up 6c to 600. Wellington Drive gained 10 per cent, 3c, to 32 after signing an agreement with a US company to provide a new motor for domestic appliances.

Other movers included: AMP, down 30c to 2300, Briscoe, up 3c to 189, Goodman Fielder, down 2c at 188, Port of Tauranga, down 7c to 777, Scott Technology, up 9c to 195, Tranz Rail, down 4c to 416, and Westpac NZ, down 5c at 1791.

There were 37 rises and 33 falls among the 112 stocks traded.

- NZPA