Strong start for NZ shares as world markets rise

Tuesday 22nd March 2011

The New Zealand sharemarket rose strongly in early trade, after stocks rose across the globe as risk appetite returned following progress in resolving Japan's nuclear crisis.

Around 10.15am the benchmark NZX-50 index was up 16.25 points to 3364.61, having risen 8.9 points yesterday.

Fletcher Building (NZX: FBU ) shares gained 5c early today to $8.78, Abano Healthcare (NZX: ABA ) was up 5c to $4.35, Sky City (NZX: SKC ) added 4c to $3.37, Telecom (NZX: TEL ) was up 2c to $2.00, The Warehouse (NZX: WHS ) gained 3c to $3.42, and Ryman Healthcare (NZX: RYM ) added 3c to 237.

Stocks rising 2c early included Vector (NZX: VCT ) to $2.43, Tower (NZX: TWR ) to $1.75, Restaurant Brands (NZX: RBD ) to $2.30, Pumpkin Patch (NZX: PPL ) to $1.32, and Air New Zealand (NZX: AIR ) to $1.14.

In the US buyers were enticed by the biggest proposed merger of the year.

AT&T rose 1.1% after the company announced a US$39 billion (NZ$53 billion) plan to buy Deutsche Telekom's T-Mobile USA, refocusing investor attention on attractive company valuations.

"The AT&T deal is just a piece of it. The other piece of it is there is a sense of some better news out of Japan and things haven't gotten any worse in Africa," said Gail Dudack, chief investment strategist at Dudack Research Group in New York.

The market volatility index fell 16.2%, its biggest daily percentage drop since May, and was trading below its 14- and 200-day moving averages for the first time since the earthquake in Japan.

The Dow Jones industrial average gained 1.5% to 12,036.53, the Standard & Poor's 500 Index climbed 1.5% to 1298.38, and the Nasdaq Composite Index added 1.8% to 2692.09.

NZPA

Comments from our readers

No comments yet