NZ sharemarket lifts early

The New Zealand sharemarket lifted early as leading stock Telecom clawed back a cent after falling to an all-time closing low yesterday of $2.14.

Telecom was up 1c to $2.15 early after the company said on Tuesday that reform of the Telecommunications Service Obligation would cost it up to $56 million in earnings a year for 2011-2013.

Retailer Kathmandu shares gained 7c, or 3.2 per cent, to $2.26 after reporting first half sales up 27.5 per cent to $106.6m.

Net profit for the six months to the end of January rose $6.8m to $4.4m, excluding costs from November's initial public offering and associated tax deductions.

Around 10.20am the benchmark NZX-50 index was up 10.02 points to 3210.98, after a 6.8-point fall yesterday.

Fletcher Building shares rose 2c to $8.15, The Warehouse gained 2c to $3.86, and Freightways was up 2c to $3.08, while Auckland Airport slipped 2c to $1.93.

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In the United States, stocks gained, pushing the Dow to a 17-month high, after a benign February inflation reading supported the Federal Reserve's renewed pledge of low interest rates.

A seven-session winning streak for the blue-chip Dow is the longest since an eight-day run in August 2009, when it rose 4.9 per cent. In the last seven sessions, the Dow has gained 1.7 per cent, but volume has been lacklustre.

The Dow Jones industrial average gained 0.5 per cent to end at 10,733.67, the Standard & Poor's 500 Index rose 0.6 per cent to 1166.21, and the Nasdaq Composite Index advanced 0.5 per cent to 2389.09.

- NZPA