The New Zealand sharemarket leapt ahead today, following a surge by stocks in the United States on strong corporate profits and rebounding home sales.
The benchmark NZSX-50 index closed up 42.54 points, or 1.458 per cent, at 2961.173, which was around the level it surged to in opening trading. The market has risen 8.2 per cent in two weeks.
Turnover was worth $127.3 million. There were 70 rises and 14 falls among the 114 stocks traded.
James Lee, head of institutional equities at First NZ Capital, said strength was across the board.
There was some profit-taking in SkyCity, which rose strongly this week in the wake of a profit upgrade. The casino operator closed down 10c at 310.
Profit-takers also contributed to a 2c fall in Fisher and Paykel Healthcare to 295.
"Otherwise, it is a strong end to the week to a very strong period for the market," Mr Lee said.
NZ Refining rose 35c, or 4.9 per cent, to 750 after Bloomberg reported US refiner Valero was considering buying either some or all of New Zealand's only oil refinery.
Auckland Airport rose 8c to 172 after the Government eased foreign investment rules. Approaches from the Middle East and Canada for the airport have been thwarted in the past but fund managers said today that the current shareholders may be reluctant sellers.
Fletcher Building rose 13c to 727 but Telecom eased a cent to 280. SkyTV rose 8c to 434, Air NZ rose 1c to 99 and Contact rose 13c to 614. TrustPower rose 9c to 770.
Mainfreight rose 8c to 435. Port of Tauranga rose 3c to 643 and NZOG rose 3c to 145. The Warehouse rose 10c to 385.
Mr Lee said 75 per cent of US companies reporting earnings in the current season had outperformed. The corporate reporting season in New Zealand from mid-August may be more mixed as earnings expectations here had not been downgraded as much.
US stocks surged on Thursday, driving the Dow industrials above the key 9000 mark for the first time since January, as strong corporate profits and rebounding home sales spurred optimism about the economy.
Even so, stock index futures dropped in late trading, suggesting Wall Street might hit a roadblock on Friday after Microsoft Corp, Amazon.com Inc and American Express posted disappointing quarterly results after the bell, sending their stocks lower.
Their reports provided a sharp contrast to robust results that diversified manufacturer 3M & Co and telecommunications company AT&T Inc reported before the bell, giving the broader market a strong start on the day.
The Dow Jones industrial average jumped 188.03 points, or 2.12 per cent, to end at 9069.29 - its highest close since November 2008. It was the Dow's first close above 9000 since January 2009.
The Standard & Poor's 500 Index gained 22.22 points, or 2.33 per cent, to 976.29. The Nasdaq Composite Index climbed 47.22 points, or 2.45 per cent, to 1973.60.
- NZPA
NZ sharemarket posts strong gains
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