Telecom, Contact lead market rise

Last updated 18:32 28/07/2010

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Market day ahead: Markets at the mercy of Greek vote NZ sharemarket: Mixed earnings season expected Stocks up but trading light Kiwi down after strong week Greek deal spurs risk appetites NZ stocks shrug off tepid start Investors look to Greece for reform plan Stocks pause while waiting on Greek deal Kiwi slips pending Greek deal, job numbers Stocks mixed as Greek fears sees gains sputter

The sharemarket rose today, led by Telecom and Contact Energy, and reflecting strength in offshore markets on the back of strong US corporate earnings.

The benchmark NZX-50 index closed up 13.755 points, or 0.457 percent, at 3022.181. There were 40 rises and 31 falls among the 108 stocks traded. Turnover was worth $80.19 million.

"Volumes are not particularly high but there is a much more positive sentiment following on from quite positive United Stated earnings results," said Ross Cuthbert, investment adviser at Craigs Investment Partners.

Telecom rose 3c to 196. Mr Cuthbert said there was no real news and the stock just had a good day. Bargain hunters may have helped Contact Energy rise 6c to 566.

Pike River Coal rose 3c to 100 on a day resource stocks were strong offshore. NZOG rose a cent to 124 ahead of its quarterly report tomorrow.

Freightways rose 4c to 272 after unveiling a special service for users of the auction website TradeMe.

PGG Wrightson rose 2c to 54 even though it must continue the process to extend a bond issue for its finance subsidiary after failing to get a quorum at a bondholder meeting today.

Rakon rose 1c to 106, continuing the rally which started last Thursday and included a 4c gain yesterday.

Fisher and Paykel Healthcare rose 2c to 296, Hellaby rose 3c to 186 and Goodman Fielder rose 2c to 164. Ryman Healthcare rose 2c to 204.

Fletcher Building fell 6c to 768, AMP fell 10c to 651 and Sanford fell 3c to 400. TrustPower fell 2c to 728 and NZX fell 4c to 146.

In the US, solid earnings from DuPont and Cummins Inc cheered investors, but that was offset by gloomy comments from steelmakers, including US Steel Corp and AK Steel Holding Corp.

Economic data was mixed. Home prices rose in May, but labour-market worries took July consumer confidence to its lowest since February.

The Dow Jones industrial average added 0.1 percent to 10,537.69, the Standard & Poor's 500 Index dipped 0.1 percent to 1113.84, and the Nasdaq Composite Index shed 0.4 percent to close at 2288.25.

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- NZPA