NZ shares up slightly in opening trade

File photo / Kenny Rodger

The New Zealand sharemarket rose slightly in opening trade on Monday after Wall Street posted gains on Friday even though doubts remain about the strength of the US recovery.

The NZ dollar is trading above US74c at a 10-month high, which will be seen as a negative factor for exporters. Trading may also be reduced by a public holiday in Sydney today and as investors wait for a Reserve Bank of Australia interest rate decision on Tuesday.

The benchmark NZX-50 index rose 6.78 points to 3219.717 in early trading.

Fisher & Paykel Appliances rose 1c to 59c after saying it has an unconditional deal to sell most of its Cleveland site in Australia.

Telecom was unchanged at $2.04 but Fletcher Building rose 5c to $8.21 and Contact Energy rose 3c to $5.73.

Rakon rose 3c to $1.24 and Air NZ rose 1c to $1.29. The Warehouse rose 2c to $3.85.

Nuplex eased a cent to $3.25 and Fisher & Paykel Healthcare eased 2c to $3.05.

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On Friday, Wall Street rose led by gains in resource stocks after data in China showed a pick-up in manufacturing activity but volume was thin and concerns remain about the strength of the US economic recovery.

Copper hit a two-year high, gold jumped to another record at US$1322 an ounce and oil climbed above US$80 a barrel to a seven-week high.

"The market is going to be very news dependent going in from now, especially after such a strong month. We have had some good news today, especially from China, that prompted a rally in Europe and was carried through the US," said Stephen Massocca, managing director at Webush Morgan in San Francisco.

The Dow Jones industrial average rose 41.63 points, or 0.39 per cent, to end at 10,829.68. The Standard & Poor's 500 Index advanced 5.04 points, or 0.44 per cent, to 1146.24. The Nasdaq Composite Index edged up 2.13 points, or 0.09 per cent, to close at 2370.75.

- NZPA