Shares edge up, as Telecom claws back

The New Zealand sharemarket lifted early as leading stock Telecom clawed back a cent after falling to an all-time closing low yesterday of 214.

Telecom was up 1c to 215 early after the company said on Tuesday that reform of the Telecommunications Service Obligation would cost it up to $56 million in earnings a year for 2011-2013.

Retailer Kathmandu shares gained 7c, or 3.2 percent, to 226 after reporting first half sales up 27.5 percent to $106.6m.

Net profit for the six months to the end of January rose $6.8m to $4.4m, excluding costs from November's initial public offering and associated tax deductions.

Around 10.20am the benchmark NZX-50 index was up 10.02 points to 3210.98, after a 6.8-point fall yesterday.

Fletcher Building shares rose 2c to 815, The Warehouse gained 2c to 386, and Freightways was up 2c to 308, while Auckland Airport slipped 2c to 193.

In the United States, stocks gained, pushing the Dow to a 17-month high, after a benign February inflation reading supported the Federal Reserve's renewed pledge of low interest rates.

A seven-session winning streak for the blue-chip Dow is the longest since an eight-day run in August 2009, when it rose 4.9 percent. In the last seven sessions, the Dow has gained 1.7 percent, but volume has been lacklustre.

The Dow Jones industrial average gained 0.5 percent to end at 10,733.67, the Standard & Poor's 500 Index rose 0.6 percent to 1166.21, and the Nasdaq Composite Index advanced 0.5 percent to 2389.09.

- NZPA