Sharemarket gains early

The New Zealand sharemarket gained in early trading, with investors continuing to applaud the SkyCity result released yesterday.

SkyCity rose 10c yesterday after reporting a 13 per cent rise in normalised annual net profit, and saying its objective was to deliver double digit earnings growth again in 2010.

In early trading today SkyCity's shares were up 3c to $3.43.

Mainfreight shares fell 3c to $4.76 after saying first quarter net surplus after tax was down 51.1 per cent from a year earlier to $4 million, amid difficult trading conditions in all countries it operated in.

But it also said trading in July and August had shown some improvement, and it expected that to continue into the third and fourth quarters.

Around 10.15am the benchmark NZX-50 index was up 6.85 points to 3087.89, having gained 9.5 points yesterday.

Shares rising early included Nuplex up 4c to $2.29, Michael Hill International up 3c to 70, Methven up 3c to $1.50, and top stock Telecom up 2c to $2.72.

Another leading stock, Fletcher Building, slipped 2c early to $7.78, Sanford was down 2c to $5.08, and investors continued to be displeased with NZ Refining Co, taking another 6c off its share price to $5.49.

NZ Refining fell 95c yesterday and 40c on Tuesday following a disappointing profit result and suspension of dividend payment.

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In the United States, stocks shook off a slide in China's equity market, as investors responded favourably to a surprising drop in crude oil stockpiles that might suggest an improving demand outlook.

The Dow Jones industrial average gained 0.7 per cent to end at 9279.16, the Standard & Poor's 500 Index rose 0.7 per cent to 996.46, and the Nasdaq Composite Index advanced 0.7 per cent to 1969.24.

- NZPA