NZ sharemarket opens firmer as other markets recover

By NZPA

Wednesday 7th March 2007

The sharemarket had a solid opening this morning as investors took comfort from the recovery of markets around the world, particularly Wall Street.

The benchmark NZSX-50 index was up 22.37 points, or 0.6%, to 4055.76 at 10.15am. Yesterday the index recovered from a sharp fall to end only 2 points down. It had fallen on Monday to a two-month low as shockwaves from last week's slump in the Shanghai sharemarket reverberated.

US stocks soared to end a three-day losing streak as nearly a week of steep declines made shares' valuations look enticing to buyers.

The Nasdaq closed up 1.9%, while the Dow and the S&P 500 rose more than 1%.

Here, market leader Telecom was up 4c to $4.81. Fletcher Building was up 6c to $10.95 and Contact Energy, which yesterday said it would pay $156m to buy Rockgas from 51% Contact owner Origin, was up 2c to $8.82.

Tower was up 9c to $2.47, and The Warehouse, which reports its first half result on Friday, was up 8c to $6.96.

Fisher & Paykel Healthcare was up 9c to $3.95, given a lift by this month's sharp fall in the New Zealand dollar.

Air NZ, which announced increased routes to China yesterday, was up 3c to $2.32.

Rakon, to join the top 50 index on Monday, replacing Promina, jumped 14c to $4.54.

Pyne Gould Guinness was up 10c to $4.50 and Sky City was down 4c to $4.90.

On Wall Street, the Dow Jones industrial average gained 157.18 points, or 1.30%, for an unofficial finish at 12,207.59.

The Standard & Poor's 500 Index advanced 21.29 points, or 1.55%, to end unofficially at 1395.41. The Nasdaq Composite Index rose 44.46 points, or 1.90%, for an unofficial close at 2385.14.

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