NZ Shares: Strong start for local market

The New Zealand sharemarket started the trading day strongly, after several indications out of the United States overnight that recession could be abating.

Among leading shares, Telecom gained 4c early to $2.42, Fletcher Building was up 12c to $6.62, and Contact Energy gained 11c to $5.58.

Around 10.15am the benchmark NZSX-50 index was up 29.91 points or 1.2 per cent to 2630.56, having ended yesterday with a minor gain of 0.8 points.

Dual-listed banking shares had good gains with Westpac adding 60c early to $26.00 and ANZ lifting 28c to $21.50.

Other early risers included Ebos Group which was up 5c to $4.80, Fisher & Paykel Healthcare up 5c to $2.92, Freightways up 5c to 270, and Pike River Coal up 3c to 78.

The few shares to lose early included NZX, which dropped 12c to $6.88, and Trustpower down 4c to $6.96, both on low volume.

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In the US, financial stocks provided a major lift late in the session as American Express climbed almost 12 per cent after defaults rose only slightly after months of deterioration.

Hope that the economic slump was showing signs of abating rose after a report said manufacturing activity in New York State contracted less severely in April, while the Federal Reserve's "Beige Book" indicated the economy continued to weaken, but the contraction's speed was fading.

But Intel limited the Nasdaq's gains, after saying economic uncertainty ruled out a clear revenue forecast.

After a choppy session, the Dow Jones industrial average gained 1.4 per cent to 8029.62, the Standard & Poor's 500 Index rose 1.3 per cent to 852.06, while the Nasdaq Composite Index added 0.1 per cent to 1626.80.

- NZPA