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NZ Shares Lift Along With Other Markets After US Rally

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Oct 30 NZPA - The New Zealand sharemarket went with the trend today as markets around the world rallied strongly after the US market logged its best one-day percentage gain in three months on Thursday.

The catalyst was data showing the US economy is emerging from the worst recession in 70 years.

The benchmark NZSX-50 index closed up 19.999 points, or 0.626 percent, at 3215.619, having started the day up 21.11 points.

"All is right with the world," Goldman Sachs JBWere dealer Peter Sigley said.

He said the market liked SkyCity's decision to stick to an objective of double digit-growth in the 2010 financial year at its annual meeting and the stock rose 7c to 347.

Briscoes' third quarter sales figures were also well received though the stock ended unchanged at 120.

TrustPower rose 2c to 757 after announcing a 23 percent rise in profit even though operating revenue fell 13 percent.

Auckland Airport, which has signalled another bond sale, rose 5c to 202.

Skellerup rose 7c to 347 after holding its annual meeting this week.

Fisher and Paykel Appliances rose 3c to 66 and investors took a statement about a charge of $70m to $75m in the carrying values of some of its North American assets as an ongoing cleansing process.

Pyne Gould Corp rose 1c to 44 as it fronted investors at its annual meeting this afternoon at which a boardroom shakeup was signalled. PGG Wrightson fell 1c to 61.

NZX rose 6c to 795 after saying operating revenue rose 29 percent in the nine months to September.

Among leading shares Telecom fell 5c to 254, while Fletcher Building lifted 10c to 832 reversing yesterday's 6c loss, and Contact Energy gained 4c to 626.

NZ Refining Co gained 21c to 533, Mainfreight lifted 1c to 533, Freightways was up 1c to 301, and Pike River Coal was up 3c to 112.

The stocks to give up ground included Hellaby, down 3c to 165, APN, down 16c to 280, and Property for Industry, down 1c to 120.

Rakon rose 2c to 117 and NZOG rose 3c to 172. Tourism Holdings rose 1c to 72 and Restaurant Brands rose 2c to 148.

The rise in US stocks came after the government's first estimate of US gross domestic product showed the economy expanded at an annual rate of 3.5 percent in the third quarter. The quarter of growth was the first after more than a year of contraction in GDP.

Equity gains were widespread, with big manufacturers, technology, financials, energy and the materials sectors all benefiting.

Sentiment was also boosted by stronger-than-expected quarterly results from consumer product heavyweights Procter & Gamble Co and Colgate-Palmolive Co.

The Dow Jones industrial average gained 2.1 percent to 9962.58, the Standard & Poor's 500 Index jumped 2.3 percent to 1066.11 -- marking its biggest one-day percentage gain in three months, and the Nasdaq Composite Index shot up 1.8 percent to close at 2097.55.

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