KEY POINTS:
Shares posted healthy gains today ahead of an expected large interest rate cut by the Reserve Bank of New Zealand this week.
The benchmark NZSX-50 index closed up 81.155 points, or 2.889 per cent, at 2889.92. The rise came after Wall Street fell on Friday but brokers said European markets were up and the Australian market also posted solid gains on Monday.
"Bargain hunters, mainly retail, are buying ahead of a good-sized interest rate cut by the end of the month," said Grant Williamson, partner at Hamilton Hindin Greene.
The RBNZ is expected to cut the official cash rate by as much as 100 basis points on Thursday, according to economists.
Pike River Coal rose 7c to 143 after reporting on Friday it had struck coal at its West Coast mine after two years of tunnelling.
But Steel & Tube was down 78c, or 22 per cent, at 282 after OneSteel pulled its $4 a share bid on Friday. Steel & Tube said today that its quarterly profit was up on last year.
"There is certainly some interest, mainly in the blue chip stocks," said Mr Williamson.
Fisher and Paykel Healthcare rose 15c to 315 and SkyCity rose 17c to 332.
Telecom rose 16c to 250 and Fletcher Building rose 23c to 621.
Goodman Property Trust rose 1c to 110 after announcing the sale of two buildings in Parnell.
Mainfreight rose 30c to 566 and Freightways fell 1c to 312.
Infratil rose 4c to 204, Trustpower rose 20c to 720 and Auckland Airport rose 8c to 183. Fisher and Paykel Appliances was down 2c at 132.
United States stocks ended last week in decline on weakness in manufacturing and financial stocks after bleak data on consumer confidence and construction.
Contact Energy was up 24c to 730. Guinness Peat Group was up 3c to 99, Hallenstein Glasson was unchanged at 252.
The Warehouse was unchanged at 387, having gained 30c on Friday amid speculation Australia's top grocer Woolworths would proceed with a takeover bid. Port of Tauranga fell 15c to 640.
In the US on Friday (local time), the Dow Jones industrial average fell 1.4 per cent to 8852.22, while the Standard & Poor's 500 Index dropped 0.62 per cent to 940.55. The Nasdaq Composite Index slipped 0.37 per cent to 1711.29.
For the week, the Dow rose 4.8 per cent, its best week in 5-1/2 years, while the S&P 500 had its best week since February with a gain of 4.6 per cent. The Nasdaq rose 4.1 per cent for its best week since early August.
- NZPA
