Modest early rise for sharemarket

Tuesday 3rd May 2011

Shares in outdoor clothing and equipment retailer Kathmandu Holdings surged in early trading to the highest level in a year.

The Kathmandu (NZX: KMD ) shares were up 10c or 4.1% to $2.55 after an 8c fall yesterday, while early today another retailer, The Warehouse (NZX: WHS ), gained 3c to $3.72.

Fletcher Building (NZX: FBU ) shares added 5c to $9.12 after losing 12c yesterday, and Contact Energy (NZX: CEN ) lifted 5c to $5.93 following a 7c drop yesterday.

Around 10.15am the benchmark NZX-50 index was up 5.94 points to 3503.8, having yesterday fallen 21.5 points.

Mainfreight (NZX: MFT ) lost 5c to $9.20 in early trading, OceanaGold (NZX: OGC ) added to yesterday's 5c loss with an 8c decline to $3.47, and Telecom (NZX: TEL ) lost 1.5c.

In the US, stocks slipped as an early bounce on Osama bin Laden's death gave way to questions around the longevity of the market's recent rally.

The impact of bin Laden's death by US forces on financial markets prompted a quick flurry of buying, which was viewed as an emotional response.

Energy and materials were the weakest performers. Investors pulled back from shares that have outperformed lately following declines in commodities.

The Dow Jones industrial average was down 0.02% at 12,807.36, the Standard & Poor's 500 Index was down 0.2% at 1361.22, and the Nasdaq Composite Index was down 0.3% at 2864.08.

NZPA

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