Modest early rise for New Zealand sharemarket

Shares in outdoor clothing and equipment retailer Kathmandu Holdings surged in early trading to the highest level in a year.

The Kathmandu shares were up 10c or 4.1 per cent to 255 after an 8c fall yesterday, while early today another retailer, The Warehouse, gained 3c to 372.

Fletcher Building shares added 5c to 912 after losing 12c yesterday, and Contact Energy lifted 5c to 593 following a 7c drop yesterday.

Around 10.15am the benchmark NZX-50 index was up 5.94 points to 3503.8, having yesterday fallen 21.5 points.

Mainfreight lost 5c to 920 in early trading, OceanaGold added to yesterday's 5c loss with an 8c decline to 347, and Telecom lost 1.5c.

In the United States, stocks slipped as an early bounce on Osama bin Laden's death gave way to questions around the longevity of the market's recent rally.

The impact of bin Laden's death by US forces on financial markets prompted a quick flurry of buying, which was viewed as an emotional response.

Energy and materials were the weakest performers.

Investors pulled back from shares that have outperformed lately following declines in commodities.

The Dow Jones industrial average was down 0.02 percent at 12,807.36, the Standard & Poor's 500 Index was down 0.2 per cent at 1361.22, and the Nasdaq Composite Index was down 0.3 per cent at 2864.08.

- NZPA