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NZ Sharemarket Gains After Reserve Bank Keeps Rates On Hold

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Sept 10 NZPA - The New Zealand sharemarket lifted in early trade after Reserve Bank Governor Alan Bollard left the official cash rate unchanged at a record low 2.5 percent.

In his announcement today, Dr Bollard also repeated his message that the Reserve Bank continued to expect the OCR to remain at or below current levels until the latter part of 2010.

He focused on risks to the present "patchy" recovery posed by the rise of the New Zealand dollar and the possibility a recovery in house prices could undermine improvements in household savings.

Around 10.15am the benchmark NZSX-50 index was up 7.73 points to 3124.14, after losing 5.1 points yesterday.

Among leading shares Telecom was up 2c early to 272, Fletcher Building was unchanged on 802 and Contact Energy was unchanged on 602.

Stocks rising early included Rubicon, up 5c to 115, Sky City up 3c to 322, Freightways up 3c to 320, Xero up 3c to 135, Methven up 2c to 160 and Ebos Group up 2c to 610.

Those falling early included Sanford, down 7c to 500, Hellaby Holdings down 4c to 150, and Cavalier Corporation down 2c to 248.

In the United States, stocks closed higher for a fourth straight day as industrial and technology companies gained from a weak US dollar.

The Dow Jones industrial average was up 0.5 percent at 9547.22, the Standard & Poor's 500 Index gained 0.8 percent at 1033.37, and the Nasdaq Composite Index rose 1.1 percent at 2060.39.

The close for the S&P index was the highest since October 6.

Nasdaq's advance was limited by Apple Inc, which fell 1 percent to $US171.14. Chief executive Steve Jobs appeared at a company event after recovering from a liver transplant, and some analysts remarked on how thin the 54-year-old chief executive looked.

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