Market rises for second day

Last updated 18:23 02/09/2010

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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 Risk appetites flip on whiff of a Greek deal NZ dollar gains on Greece, but still range bound NZ stocks rise, new high for Trade Me shares

The New Zealand sharemarket rose for a second consecutive day after a strong Fonterra online milk powder auction followed news of strength in the Australian and Chinese economies yesterday.

The market continues to demonstrate resilience in the wake of the collapse of South Canterbury Finance and the triggering of the Crown retail deposit guarantee.

"The Government has handled it nicely and I think the market will be preparing for when the money is paid to those investors. I imagine some of it will come into the equity market," said Grant Williamson, director at Hamilton, Hindin, Greene.

The benchmark NZX-50 index closed up 5.384 points, or 0.175 percent, at 3082.484, having been up around 19.19 points in early trading. The Australian market under-performed offshore leads in response to weak trade data but markets across Asia were firm.

"Whilst global market trade over the last few days has been positive thanks to better-than-expected economic data, there's still a lot of caution and tell tale signs that sentiment is not quite what it needs to be for sustainable move higher," said Ben Potter, market strategist at IG Markets.

Mr Williamson said volume in the New Zealand market was still nothing to get excited about. The standout performers today included companies that reported strong results in the earnings season.

Nuplex rose 5c to 318 and Skellerup rose 4c to 85 to its highest level since 2008. Both posted strong results.

Fletcher Building rose 7c to 768 and Contact Energy was unchanged at 561. Telecom eased 2c to 203.

Pike River Coal rose 2c to 107, Rakon rose 2c to 116 and Mainfreight rose 9c to 680. Infratil rose 3c to 168 and NZOG rose 2c to 120.

Ebos rose 11c to 686 and Fisher & Paykel Healthcare rose 6c to 298.

Guinness Peat Group eased 1c to 62 and NZX eased 1c to 139. TrustPower eased 9c to 716.

NZ Farming Systems Uruguay eased to 69c after directors recommended Olam International's 70c a share offer.

In the US, the Dow Jones industrial average rose 2.5 percent to 10,269.47, the Standard & Poor's 500 Index added 3 percent to 1080.29, and the Nasdaq Composite Index gained 3 percent to 2176.84.

The S&P closed above its 14-day moving average for the first time since August 10.

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- NZPA