Sharemarket lifts early

Wednesday 8th June 2011

The New Zealand sharemarket edged to its lowest level in a month in early trading but quickly rebounded on the back of modest gains in key stocks such as Telecom, which was up 2c.

Around 10.20am the benchmark NZX-50 index was up 5.67 points to 3511.28, after ending down 10 points yesterday, and edging under 3504.5 at one point in the first few minutes of trading today.

Telecom (NZX: TEL ) shares were up 0.9% to $2.32, Ebos Group (NZX: EBO ) added 4c to $7.19, Hallenstein Glasson (NZX: HLG ) gained 2c to $3.80, Freightways (NZX: FRE ) was up 2c to $3.37, Sky TV (NZX: SKT ) edged up 1c to $5.68, with Sky City (NZX: SKC ) also up 1c, to $3.61.

Mainfreight (NZX: MFT ) lost 2c to $9.80, and Port of Tauranga (NZX: POT ) fell 4c to $8.80.

Contact Energy (NZX: CEN ) shares were put in a trading halt before the market opened as the company completes a bookbuild for the remaining shares not taken up under a recent entitlement offer.

In the US, stocks extended a losing streak for a fifth day on mounting concerns about the economy after bearish comments from Federal Reserve chairman Ben Bernanke.

The market, which started off on a positive note after the S&P 500 hit a two-month low in the previous session, reversed course to turn negative after Bernanke started speaking.

He acknowledged a slowdown in the economy, but offered no suggestion the central bank is considering any further monetary stimulus to support growth.

The Dow Jones industrial average slipped 0.2% to end at 12,070.81, the Standard & Poor's 500 Index declined 0.1% to 1284.94, and the Nasdaq Composite Index shed 0.04% to finish at 2701.56.

NZPA

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