New Zealand sharemarket rises as other markets fall

File photo / NZH

The New Zealand sharemarket managed to close in positive territory today when markets across Asia were lower and currency markets were in turmoil.

The benchmark NZX-50 index closed up 2.786 points, or 0.084 per cent, at 3329.587 after opening down 20 points. Turnover was worth $125.36 million. There were 31 rises and 38 falls among the 99 stocks traded.

Fletcher Building ended up 2c at 868, erasing a fall to 860, after the company made progress in its bid for Crane Group. It has dropped conditions on the offer and is moving to control the board and said a shareholder from the founding family is reluctantly accepting the offer.

Kathmandu shares rose 9c, or 4.64 per cent, to 203 after the outdoor clothing and equipment company today reported half year earnings rose 28.4 per cent.

The company's restructured balance sheet with lower debt levels had enabled it to carry more stock in key product categories when compared to the investment in stock before being listed.

Other retailers were also strong, with Pumpkin Patch up 2c at 128, The Warehouse up 2c at 343 and Hallenstein Glassons up 6c at 368.

Today many companies, including Vector, Contact Energy, and DNZ Property warned shareholders against accepting low-ball unsolicited offers for their shares from companies associated with businessman Bernard Whimp.

Air NZ rose 5c to 113 but Auckland Airport was unchanged at 212.

Contact rose 2c to 584 and Telecom rose 0.5c to 199.5. TrustPower rose 1c to 718.

Tower fell 6c to 173, PGG Wrightson fell 1c to 50 and SkyCity fell 1c to 327. Xero fell 3c to 240, Scott Technology fell 2c to 131 and Rakon fell 1c to 104. Vector fell 3c to 240 and Guinness Peat Group fell 1.5c to 77.

"US markets were sold off heavily and when the US dollar yen plunged to records lows in early Asian trade, it looked like the region was about to step off a cliff again. But so far, the news flow out of Japan has been relatively neutral," said Ben Potter of IG Markets.

In the US, major indexes lost around 2 per cent in a volatile session as investors feared Japan's nuclear crisis could worsen.

Phil Flynn, senior market analyst with PFG Best in Chicago, said markets were trading "headline to headline, so I'm telling people not to overcommit to markets at this time".

Komal Sri-Kumar, who helps manage US$116 ($160) billion as chief global strategist at TCW Group Inc in Los Angeles said: "The trading volume suggests a lot of the trade is due to panic, and soon buyers will realize there wasn't much basis for the move."

The Dow Jones industrial average was down 2 per cent at 11,613.30, the Standard & Poor's 500 Index was down 2 per cent at 1256.88, and the Nasdaq Composite Index was down 1.9 per cent at 2616.82.

- NZPA