Telecom, Fletcher early rises on NZ market

The New Zealand sharemarket opened firmly as leading shares Telecom and Fletcher Building started the day well.

Telecom shares gained 4c early to $2.17, after the company's stock had fallen to a historic low $2.11 in the past week or so.

A fortnight ago the market heavyweight said reform of the Telecommunications Service Obligation would cost it up to $56 million in earnings a year for 2011-2013. Investors worried the reduced earnings would lead to a cut in dividend payment.

Fletcher Building shares gained 7c early to $8.45, while Mainfreight lifted 8c to $6.21, The Warehouse was up 3c to $3.80, and Abano Healthcare gained 5c to $5.35.

Around 10.20am the benchmark NZX-50 index was up 11.18 points to 3262.28, after yesterday ending up 10.6 points at its highest close for 10 weeks.

Infratil shares gained a further 4c early to $1.72, on heavy volume, after lifting 3c yesterday on news the company, in a 50/50 consortium with the New Zealand Superannuation fund, has finalised the purchase of Shell New Zealand's downstream assets.

Sanford lost 4c early to $4.51, while Steel & Tube slipped 2c to $2.68, both on low volume.

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In the United States, stocks rose as miners and energy companies advanced on US dollar weakness and investors bought recent high fliers as the quarter's end approached.

But overall volume was light at the start of a holiday-shortened week.

The Dow Jones industrial average rose 0.4 per cent to 10,895.86, its highest close since September 2008, the Standard & Poor's 500 Index climbed 0.6 per cent to 1173.22, and the Nasdaq Composite Index jumped 0.4 per cent to 2404.36.

- NZPA