NZ index carries on from 4000

By NZPA

Thursday 21st December 2006

The New Zealand share market carried on upward in opening trading after making history yesterday with a push through the landmark index level of 4000.

The benchmark NZX-50 index was up 6.353 points at 4011.317 in opening trade.

NZX chief executive Mark Weldon rejected comparisons with 1987 when markets around the world crashed after reaching records.

"That's very very different. That was clearly a bubble. What we have had here over the last four years is a sustained growth of around 20 to 25% on average over the last four years.

"What you have here is companies that are generating good cashflow earnings from overseas," he said on National Radio.

He said there was a lot of excitement about the market's performance.

Brokers said the market has been driven by increased corporate activity and strong earnings against expectations of an economic slowdown.

Telecom rose 1c to $4.89 in opening trading and Fletcher Building eased a cent to $10.78.

Infratil was unchanged at $5.50. GPG rose 3c to $2.46 and Tower eased a cent to $2.26.

Contact rose 4c to $8.10 and Fisher & Paykel Appliances rose 1c to $3.90.

In the US, the stock market was little changed as a disappointing outlook from heavyweight FedEx offset price hikes from another round of global merger and acquisition activity.

The Nasdaq was boosted by Swedish telecommunications equipment maker Ericsson AB's offer to buy networking equipment vendor Redback Networks Inc but FedEx shares fell after it reported an earnings forecast for the third quarter below estimates.

The Dow Jones industrial average was down 7.13 points, or 0.06%, at 12,464.19. The Standard & Poor's 500 Index was up 0.61 point, or 0.04%, at 1426.16. The Nasdaq Composite Index was up 6.61 points, or 0.27%, at 2436.16.

The Dow hit a record high of 12,491.91 in intraday trading and finished at 12,471.32, its 21st record close since October.

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