Modest gains as investors wait for Reserve Bank

The New Zealand sharemarket posted modest while investors waited for the Reserve Bank of New Zealand's latest assessment of the economy today. Photo / Mark Mitchell

The New Zealand sharemarket posted modest gains as other markets faltered yesterday while investors waited for the Reserve Bank of New Zealand's latest assessment of the economy today.

The benchmark NZX-50 index closed up 12.48 points, or 0.38 per cent, at 3294.34, after Tuesday closing down 11.3 points.

Stuart Hardie at Craigs Investment Partners said strength in selective leaders pushed the index higher on a day where there was little corporate news to trade on.

Fletcher Building gained 5c to $7.88, Auckland Airport gained 6c to $2.13 and TrustPower rose 8c to $7.30. Contact Energy was unchanged at $6.17 after earlier being higher, and Telecom was also unchanged at $2.15.

Before the market opened it was announced that a joint Telecom and Vodafone proposal was one of three shortlisted for the Government's rural broadband initiative.

New Zealand equities offered attractive dividend yields while interest rates were expected to be little changed, Hardie said.

The Reserve Bank is expected to hold the official cash rate unchanged today.

"Interest rates look like they are going to be held until March or June and we are thinking a little bit later on," Hardie said.

Sky City eased 2c to $3.16, Mainfreight was down only 1c at $7.60 after going ex a 9c dividend.

Sanford was unchanged at $4.76 on a day it went ex a 14c dividend.

Goodman Property Trust rose 2c to 94c after it agreed to acquire a property occupied by Carter Holt Harvey in Christchurch. Kiwi Income Property Trust rose 2c to $1.00 and Property for Industry was unchanged at $1.10.

Scott Technology was untraded after telling shareholders at its annual meeting about a strong order book. Xero gained 5c to $2.20.

Ebos Group fell 12c to $7.50 and Fisher & Paykel Healthcare was down 4c to $3.13.

In the United States stocks eked out a small gain as investors' enthusiasm over a tax cut extension deal was short-circuited by rising bond yields and reports regulators were stepping up an insider trading probe.

The Dow Jones industrial average was down 0.03 per cent at 11,359.16, the Standard & Poor's 500 Index was up 0.1 per cent at 1223.75 and the Nasdaq Composite Index was up 0.1 per cent at 2598.49.

- NZPA