NZ stocks: Market reaps reward of large US equities bounce

12.45pm

The New Zealand market was up today as markets offshore picked themselves off the mat, although brokers warned that did not signal a rebound.

By mid-morning the NZSE-40 capital index was up 23.76 points, or 1.20 per cent, at 2011.24.

John Tomsett of JB Were said Telecom was the mover and shaker on the New Zealand market today, gaining 11c to 506 following last week's sale of Verizon's 20 per cent stake, leaving it with about 1 per cent.

Telecom also received a boost from big rises in the US market, as did fellow blue chips discount retailer The Warehouse, up 7c at 712, and Auckland Airport, up 5c at 440.

"It was a bit of a firmer night across the board," Mr Tomsett said.

"The market looks a bit brighter at the moment, although relatively small volumes through. It's just nice to see Telecom on the move."

Turnover was light with 12.03 million stocks traded worth $33.80 million.

The Reserve Bank left interest rates unchanged in New Zealand, citing the stronger than expected growth in the domestic economy in the first half of the year matched against a world recovery that was taking longer than expected.

In the United States, stocks soared in a late comeback to kick off the fresh quarter as a preliminary deal between Iraq and the US drew bargain-hungry investors back into the ravaged market.

But scepticism dogged the rally a day after the blue-chip Dow and the broad Standard and Poor's 500 suffered their biggest quarterly drop since the crash of 1987.

Traders noted the fragile US economy, weak corporate profits and the prospect of a war against Iraq still overhang the market.

The Dow Jones industrial average surged 346.86 points, or 4.57 per cent, to 7938.79; the Nasdaq composite index rallied 41.51 points, or 3.54 per cent, at 1213.57; and the broader Standard and Poor's 500 index climbed 32.64 points, or 4 per cent, to 847.92.


Europe's pummelled blue chips tried to put their worst quarter in almost five years behind them by ending at session highs on Tuesday, as UK banks reacted to positive broker comment and as shares tracked Wall Street higher.

On the New Zealand market, Baycorp Advantage gained 10c to 364, Carter Holt Harvey was up 5c at 163, Contact Energy gained 2c to 380, Fisher and Paykel Appliances was up 15c at 1000, Fletcher Building rose 3c to 300 and Tranz Rail was up 7c at 166.

Tranz Rail rose after the announcement yesterday from shipper P&O Nedlloyd that it would cut out two ports from its schedule for the huge albatross class container ships. Road and rail transport is expected to reap some rewards in great traffic between ports as a result.

Briscoe Group lost 1c to 243, Fletcher Forests was down 1c at 22, Infratil lost 3c to 187, and Powerco was down 5c at 180.

AMP was up 51c at 1411 on minimal volume of 947 stocks.

There were 49 rises and 15 falls on the 101 stocks traded.

- NZPA