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NZ Sharemarket Edges Up Early

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Oct 7 NZPA - The New Zealand sharemarket only managed to edge up in early trade, despite strong gains in stocks in the United States.

Around 10.15am the benchmark NZSX-50 index was up 3.48 points to 3155.03, having gained 12.8 points yesterday.

Stocks gaining early included Trustpower up 5c to 750, Steel & Tube up 4c to 314, NZ Oil & Gas up 2c to 172, and Telecom up 2c to 260.

Early falls were recorded by Cavalier Corporation, down 5c to 250, Fletcher Building down 2c to 838, and Fisher & Paykel Healthcare down 2c to 315.

The lukewarm interest by investors in this country comes as the NZ dollar continues to rise against the greenback, euro and sterling.

The kiwi, however, did ease against the Australian dollar overnight after the Reserve Bank of Australia raised interest rates to 3.25 percent from 3 percent yesterday afternoon.

Australia became the first major country to raise rates since the start of the financial crisis last year.

In the US, investors barrelled into stocks for a second day, betting corporate profits will surge as the global economy recovers.

The Dow Jones industrial average rose nearly 132 points, bringing its two-day advance to 244.

The Australian interest rate move touched off hopes that other economies may also be strengthening. It also dented demand for the US dollar, which, in turn, raised commodity prices. US energy and materials stocks jumped as oil rose and gold reached a record high.

The Dow rose 1.4 percent to 9731.25, the Standard & Poor's 500 index rose 1.4 percent to 1054.72, while the Nasdaq composite index rose 1.7 percent to 2103.57.

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