NZ shares follow world markets higher

Wednesday 2nd February 2011

The New Zealand sharemarket rose strongly in early trading, after global stocks jumped more than 1% and safe haven assets such as bonds fell as news of strong manufacturing data worldwide lifted risk appetites, and worries about unrest in Egypt eased.

Leading stocks showed firm gains, with Fletcher Building (NZX: FBU ) gaining 7c early to $7.85, Telecom (NZX: TEL ) lifting 4c to $2.29, and Contact Energy (NZX: CEN ) rising 5c to $6.22.

Around 10.15am the benchmark NZX-50 index was up 14.41 points to 3362.88, having yesterday ended up 9.7 points.

The Warehouse (NZX: WHS ) was also up 5c early to $3.60, while Fisher & Paykel Healthcare (NZX: FPH ) slipped 2c to $3.20.

Newly-merged Building Society Holdings (NZX: BSH ) slipped 1c early to 87c, after debuting yesterday with an opening price of 95c

In the US, the Standard & Poor's 500 Index closed above 1300 for the first time in 2-1/2 years and looked poised for more gains due to strong earnings and a surge in US manufacturing.

Provisional closing figures put the Dow Jones industrial average up 1.3% to 12,040.16, the S&P 500 up 1.7% to 1307.51, and the Nasdaq Composite Index up 1.9% to 2751.19.

European shares posted their biggest gain in three weeks, buoyed by strong manufacturing data from both the euro zone and the US. Oil shares got a boost from rising crude prices in London.

The pan-European FTSEurofirst 300 index rose 1.4% to end at 1159.80 points.

NZPA

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