Sharemarket lifts modestly in early trade

The New Zealand sharemarket rose in early trading, following a good show by equities in Europe and the United States.

Fletcher Building was prominent among stocks rising early, adding 5c to $7.98, while Cavalier Corporation also showed early good form gaining 4c to $2.70.

Trustpower added 2c to $7.27 and NZX was up 2c to $2.06, while among the leaders Telecom eased 1c to $2.20 but Contact Energy slipped 1c to $6.22. NZ Oil & Gas was down 2c to $1.51.

Around 10.15am the benchmark NZX-50 index was up 5.46 points to 3169.61, on top of an 8-point gain yesterday, which was the market's fourth consecutive daily gain.

Dual-listed Westpac was up 10c early to $34.00, while Goodman Fielder added 5c to $2.00.

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In the US stocks rose for a second straight day, boosted by news that British insurer Prudential would buy American International Group's insurance unit in Asia for US$35.5 billion ($50.75b).

Based on preliminary figures, the Dow Jones industrial average closed up 0.8 per cent to 10,403.79, the Standard & Poor's 500 Index rose 1 per cent to 1115.68s, and the Nasdaq Composite Index climbed 1.6 per cent to 2273.57.

The pan-European FTSEurofirst 300 closed up 1.1 per cent as firm commodity prices lifted mining and oil shares.

- NZPA