NZ sharemarket rises early

File photo / Paul Estcourt

The New Zealand sharemarket rose in early trading after stocks in the United States ended last week with their best gains in nearly four weeks.

Comments from Federal Reserve Chairman Ben Bernanke about the United States economy and the Fed's readiness to act initially caused skittishness, but the US market improved as investors took a more positive view of Bernanke's comments about the economy and the Fed's readiness to act.

Bernanke told central bankers at a conference in Jackson Hole, Wyoming, the recovery had weakened more than expected but the US central bank was ready to take further steps if needed to spur the recovery.

The Fed chairman downplayed concerns that the economy might slip back into recession, reassuring investors spooked by his recent comments the US economy faced "unusual uncertainty".

Around 10.20am today the benchmark NZX-50 index was up 19.04 points to 3026.48, having lost 10.8 points on Friday.

Fisher & Paykel Healthcare lifted 7c to $2.88, Nuplex gained 5c to $3.15, Fletcher Building was up 4c to $7.56, and Hallenstein Glasson gained 3c to $3.85.

Sky TV added 10c to $5.10 but only on small volume. Contact Energy was up 2c to $5.69 and Telecom gained 1c to $2.01.

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In the US, the Dow Jones industrial average ended Friday up 1.7 per cent to 10,150.65, the Standard & Poor's 500 Index jumped 1.7 per cent to 1064.59, and the Nasdaq Composite Index climbed 1.7 per cent to 2153.63.

Despite that, the Dow and S&P 500 racked up their third week of declines in a row. For the week, the Dow was down 0.6 per cent, the S&P lost 0.7 per cent, while the Nasdaq gave up 1.2 per cent.

- NZPA