NZ stocks: Market posts healthy gains

The New Zealand share market was decidedly perky today, leading brokers to speculate new money is flowing into the market.

The market is nearly back to the level it started the year after suffering sustained losses during the profit reporting season in February.

The benchmark NZSX-50 index closed up 48.131 points, or 1.807 per cent, at 2711.268. It was 2715.711 on December 31, 2008.

Turnover was worth $106 million. The trading of $13 million worth of Auckland Airport shares was noted by brokers.

There were 63 rises and 15 falls among the 108 stocks traded.

Investors are still chasing the leading stocks but demand was also noted in mid-sized listings like Mainfreight, up 15c at 445, and Infratil, up 8c at 158.

"The positive tone continues," ABN Amro Craigs senior dealer Bryon Burke said. "We have had a bunch of money come into the New Zealand market," he said.

The market has survived bad economic data and was now responding to positive data.

Telecom rose 9c to 254 and Fletcher Building recovered early weakness to close up 3c at 676. Contact rose 9c to 579.

Barry Lindsay, research manager at First NZ Capital, said there had clearly been an improvement in investor sentiment. He said the New Zealand market was oversold and weak holders of shares have been shaken out.

The Warehouse rose 9c to 354, SkyTV rose 20c to 425 and Lion Nathan rose 37c to 1010.

Auckland Airport was unchanged at 170 but the 7.6 million shares traded was high for the stock.

Nuplex rose 2c to 37.

Fisher & Paykel Appliances rose 1c to 47 and the healthcare stock rose 4c to 297.

Port of Tauranga rose 10c to 550.

US stocks surged on Thursday as expectations of reassuring results from majors, including Google, lifted technology shares, while JPMorgan's better-than-expected profit added to bank stabilisation hopes.

"People are starting to feel that maybe there's a slight chance this is not just a bear market rally," said John O'Brien, senior vice president at MKM Partners LLC in Cleveland, referring to the market's 28 per cent rebound since the 12-year closing low of March 9.

The Dow Jones industrial average rose 95.81 points, or 1.19 per cent, to 8125.43. The Standard & Poor's 500 Index gained 13.24 points, or 1.55 per cent, to 865.30. The Nasdaq Composite Index jumped 43.64 points, or 2.68 per cent, to 1670.44.

- NZPA