NZ stocks: Weak follow-up to Wall St jump

12.30 pm

The sharemarket resumed from the long weekend in positive tone but brokers said the response was only lukewarm given Wall Street's strong performance over the last two trading days.

"It's firmer, but I'd have to say it's relatively disappointing given Wall Street has had two strong days," Credit Suisse First Boston broker David Price said.

United States stocks added to gains in the last half hour of trading as investors bet on an economic rebound in coming months in the wake of upbeat earnings from blue-chip giants such as Minnesota Mining and Manufacturing Co.

The Dow Jones industrial average soared 182 points, or 1.98 per cent, to 9386. The broader Standard and Poor's 500 Index added 16 points, or 1.55 per cent, to 1090. The technology-laced Nasdaq Composite Index gained 32 points, or 1.95 per cent, to 1703.

Here, the NZSE-40 Index was up 5.68 to 1896.22 by 11.15 am.

Mr Price said trading felt more like a Monday and the volume of just $12.2 million bore that out.

Air New Zealand was the star performer -- the B shares rising 20 per cent, or 5c, to 29c, while the A shares rose, 2c, to 30c. Mr Price said the stock rose strongly in Australian trade yesterday and today's action was partly short covering.

The company confirmed some announcements on executive positions but brokers were scratching heads to account for the sharp rise.

Market leader Telecom, bobbing just a few cents above an eight year low, rose 2c to 429c. Telstra, which was up 7c to 610, is holding a "fireside chat" today and brokers said it could give insights into the performance of Telecom and AAPT.

Other stocks to rise included Independent Newspapers, 8c to 342, Auckland Airport, 5c to 327, Baycorp, 5c to 1185, Contact, 2c to 399, Software of Excellence, 4c to 204, Sky City, 7c to 1151 and Westpac NZ, 5c to 1580.

Carter Holt Harvey was 1c lower at 148 after getting a credit ratings downgrade on Friday after the market closed.

Others to fall included SouthPort, 7c to 145, Port of Tauranga, 15c to 685, Ports of Auckland, 5c to 550, and Sky TV, 5c to 335.

There were 39 rises and 21 falls among the 103 stocks traded.

- NZPA