KEY POINTS:
The New Zealand sharemarket closed higher after equities in the United States spurted higher in late trade.
The benchmark NZSX-50 index closed up 55.643 points, or 2.099 per cent, at 2706.788, having yesterday closed down nearly 32 points.
Some of the larger companies posted the biggest gains today with Telecom up 9c to 243 and Fletcher Building up 19c to 557.
Speculation yesterday that there was a buyer interested in Telecom's Australian business AAPT captured the attention of investors.
Auckland Airport, which today announced a new organisational structure and leadership team, was up 7c to 171.
Another notable mover was Guinness Peat Group, up 6c at 101, on heavy volume.
"Wall Street made an encouraging rebound but there is a lot of news coming out of United States and people are still jittery," said Hamilton Hindin Greene director Adrian Vance.
Investors are also waiting to see how much the Reserve Bank cuts interest rates by tomorrow morning.
A cut in the official cash rate of between 100 and 150 basis points is expected.
Lower interest rates take pressure off businesses and make dividend yields on shares more attractive to investors. The lower currency is also taking pressure off exporters.
Volume was a healthier $86.64 million worth of shares. There were 57 rises and 20 falls.
The Warehouse was up 7c to 329, and Port of Tauranga added 20c to 600.
Mainfreight rose 2c to 472 and Sky TV rose 8c to 330. Freightways rose 2c to 291. Tower rose 7c to 154 and Infratil rose 3c to 176. Fisher and Paykel Appliances rose 2c to 142 and Nuplex rose 10c to 362.
Stocks to ease today included SkyCity, down 1c to 298, Pike River Coal, down 1c to 97, and Rakon, down 1c to 145.
US stocks snapped back on Tuesday after a pledge by General Electric to leave its dividend intact in a fragile economy sparked optimism.
Financial stocks recovered after the Federal Reserve extended several emergency measures integral to stabilizing banks during the credit crisis.
The Dow Jones industrial average gained 270.00 points, or 3.31 per cent, at 8419.09. The Standard & Poor's 500 Index rose 32.60 points, or 3.99 per cent, at 848.81. The Nasdaq Composite Index added 51.73 points, or 3.70 per cent, at 1449.80.
- NZPA
