Small early gains by sharemarket

Thursday 19th May 2011

The New Zealand sharemarket made only small gains in early trading, despite a rebound in stock markets around the world, as key share Telecom pulled back from yesterday's 14-month high.

Around 10.15am the benchmark NZX-50 index was up 2.44 points to 3561.99, after yesterday ending up 1.5 points after having reached an intraday high around 3567, its highest level in nearly three years.

Telecom (NZX: TEL ) was down 4.5c at one point early today but pared losses within minutes to 2.5c, taking the price to $2.35, followed yesterday's announcement the Government had pulled a regulatory holiday from its ultrafast broadband plan. Some investors thought the move would mean Telecom was in pole position to build the network.

Yesterday Telecom shares climbed as high as $2.40 in intraday trading, their highest level in 14 months.

Ryman Healthcare (NZX: RYM ) charged ahead 8c early to $2.70 after the aged care and retirement village operator announced a 17% rise in full year underlying profit to $72 million.

NZX (NZX: NZX ) gained 5c to $2.41, Port of Tauranga (NZX: POT ) lifted 4c to $8.99, Steel & Tube (NZX: STU ) was up 4c to $2.66, and NZ Refining Co (NZX: NZR ) added 3c to $4.58.

A rally in commodity prices from steep losses helped lift global stocks, with US stocks recording their best day in three weeks, led by gains in energy and basic materials shares, while a more than 5% jump in the stock of computer maker Dell boosted the technology sector.

The Dow Jones industrial average gained 0.65% to 12,560.18, the Standard & Poor's 500 Index rose 0.9% to 1340.68, and the Nasdaq Composite Index added 1.1% to 2815.00.

World stocks as measured by MSCI jumped 0.9%, bouncing off five days of losses, while Europe's FTSEurofirst 300 rose 0.4%.

NZPA

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