Small early gain on sharemarket

Shares in NZ Refining Co fell 10c in early trading to $3.95 after the company said it was expecting full year net profit of between $10 million and $20m.

That compares with net profit of $125m for the 2008 calendar year.

NZ Farming Systems Uruguay gained 2c early to 49 after reporting an increase in milk prices had improved its outlook for this financial year.

It now expects its earnings before interest and tax (ebit) loss for the 2009/10 financial year to be "no more than US$10 million". Analyst consensus had been for an ebit loss of US$10m to US$15m.

Around 10.15am, the benchmark NZX-50 index was up 6.6 points to 3138.9 points, on top of yesterday's 15.2-point gain.

Stocks rising early today included market leader Telecom, up 3c to $2.42, NZ Oil & Gas up 2c to $1.65, and Cavalier Corp up 2c to $2.57, while Contact Energy eased 2c to $5.88.

Shares in Allied Farmers were still to resume trading shortly after the market opened, following a narrow vote in favour by Hanover investors on Allied Farmers' debt for equity swap proposal.

A trading halt on Allied Farmers' shares was extended shortly before the market closed yesterday, pending further word from Allied Farmers about the remaining conditions for its proposal to acquire the finance assets of Hanover Finance and its subsidiary United Finance.

That announcement was expected today.

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In the United States, stocks ended little changed after the Federal Reserve reiterated its intention to keep interest rates low for the foreseeable future to ensure a sustainable economic recovery.

The Fed voted unanimously to keep benchmark borrowing costs in a range of zero to 0.25 per cent, which represents historic lows.

"I saw nothing new out of the Fed today that led me to believe it was going to change any scenario that I came into the day with," said Stephen Massocca, managing director of Wedbush Morgan in San Francisco.

"It's a neutral for stocks."

Preliminary figures put the Dow Jones industrial average down 0.1 per cent to 10,443.46, the Standard & Poor's 500 Index added 0.1 per cent to 1109.42, and the Nasdaq Composite Index gained 0.2 per cent to 2206.42

- NZPA