NZ Shares: Market flat ahead of current account data

The New Zealand sharemarket edged up in early trade ahead of the release of the December quarter current account deficit today.

The flat start came after volatile trading in the United States which ended with stocks staging a late rally.

Around 10.15am the benchmark NZX-50 index was up 2.82 points to 2633.14, having dropped 5 points yesterday

Nuplex continued its recovery this week, with an early 11c gain to 99 on top of yesterday's 20c rise, as its share price recovered from the plunge from $1.07 to 51 last Friday after the company announced plans for a seven-for-one rights issue.

Fisher & Paykel Appliances, which yesterday announced it was taking up the Government's idea of a nine-day working fortnight, was also up 7c, rising to 50c following a 4c gain yesterday.

Leading shares were lacklustre early with Fletcher Building down 4c to $6.03, Contact Energy down 1c to $5.90 and Telecom unchanged at $2.35.

Cavalier Corp was up 6c to $1.66, Sky TV added 8c to $4.00, and Restaurant Brands lifted 2c to 78. NZX was up 9c to $6.75 and Port of Tauranga lifted 10c to $5.15, both on small volume.

Air NZ dropped 2c early to 89, with The Warehouse down 2c to $3.65. Among dual-listed companies Westpac was down 33c to $24.00, ANZ dropped 20c to $19.80, and Lion Nathan lost 15c to $9.75.

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In the US, stocks rose in a late rally as unexpectedly strong housing and durable goods data fuelled hopes the economy is finally on the mend, offsetting concerns the US may struggle to fund plans to pull the economy out of recession.

Trading was volatile as poor demand in a US Treasury auction poured cold water on an early rally sparked by the reassuring economic data. But by the end of the session much of that disappointment had worn off, traders said, as investors bet the economy was improving and stocks would continue rising from recent 12-year lows.

The Dow Jones industrial average gained 1.2 per cent to 7749.81, the Standard & Poor's 500 Index rose 1 per cent to 813.88, and the Nasdaq Composite Index added 0.8 per cent to 1528.95.

- NZPA