Wall Street surge boosts NZ sharemarket

Thursday 2nd December 2010

The New Zealand sharemarket started the day well, after a powerful surge on Wall Street.

Fletcher Building (NZX: FBU ) wiped out its loss of yesterday in early trading, rising 8c to 795, while Telecom (NZX: TEL ) edged up 1c to 216, and Contact Energy (NZX: CEN ) lifted 1c to 599 on top of its 5c gain yesterday.

Around 10.15am the benchmark NZX-50 index was up 12.01 points to 3277.11, after a marginal 0.6-point lift yesterday.

Fishing company Sanford (NZX: SAN ) lifted 5c to 480 in early trading, on top of its 5c rise yesterday that came after the company announced the completion of its agreement to buy Pacifica Seafoods' Greenshell mussel and Pacific oyster businesses for $85 million.

Port of Tauranga (NZX: POT ) added 5c to 745, Mainfreight (NZX: MFT ) gained 4c to 745, and retailer The Warehouse (NZX: WHS ) was up 3c to 379. OceanaGold (NZX: OGC ) lifted 10c early to 447, on top of a 25c lift yesterday.

After ending up 23c yesterday, Ebos Group (NZX: EBO ) shares were down 3c early today to 304, with Trustpower (NZX: TPW ) shares down 4c early today to 740 after a 16c gain yesterday. Renaissance (NZX: RNS ) was down 4c to 31c and Cavalier (NZX: CAV ) lost 3c to 304.

The sharp gain in US stocks came as European officials' efforts to save the euro zone appeared to be near a critical point and data suggested the global economic recovery was steaming ahead.

Preliminary figures put the Dow Jones industrial average up 2.3 percent to end unofficially at 11,255.78, with the Standard & Poor's 500 Index up 2.2 percent to 1206.07, and the Nasdaq Composite Index up 2.1 percent to 2549.43.

NZPA

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