Goodman Fielder, the food manufacturer that wrote down the value of its baking business last month, HAS extended its gain from a record low, leading the NZX 50 Index higher.

Warehouse Group fell after posting a drop in earnings and lowering its dividend.

The NZX 50 rose 20.95 points, or 0.6 per cent, to 3293.45 as at midday. A rally in equity markets in the US and Europe after central banks teamed up to provide US dollars to European banks, helped set a positive tone for the local bourse.

Goodman Fielder climbed 3.9 per cent to 80 cents, its second daily gain since hitting a record low close of 76 cents on Sept. 14. The stock is rated a 'hold' based on a Reuters survey of analysts.

The company didn't provide any guidance last month when it reported a full-year loss on the baking charge. It plans to give an update at the November 24 annual shareholders' meeting.

Financial stocks rose after a move by the European Central Bank to provide funding to euro zone banks eased fear of a liquidity crunch, with Westpac, gaining 2.9 per cent to $24.80 on the NZX.

Australia & New Zealand Banking Group, the country's biggest lender, rose 2.5 per cent to $24.50.

SkyCity Entertainment Group rose 2.6 per cent to $3.50 with investors betting the company will be one of the winners from the Rugby World Cup tournament.

The casino and hotel operator had previously said it expected sporting event to boost its revenue by $20 million.

NZX, the share market operator, rose 2.2 per cent to $2.35 after an upbeat APN news service report on potential new listings of Trade Me, Telecom's Chorus unit, and Quadrant Private Equity's Summerset unit before the end of the year.

Private hospital operator Wakefield Health was unchanged at $5 after it said it will tap investors for up to $15 million to help pay for recent acquisitions in Tauranga and Auckland.

The company has received commitments from institutional investors and cornerstone shareholders for an $11 million placement at a 3 per cent discount to the current share price, and it plans to tap shareholders for a further $4 million in a share purchase plan at the same price.

New Zealand's biggest listed retailer Warehouse fell 2.9 per cent to $3.35, leading decliners at the open after it posted an 8.9 per cent decline in full-year earnings before items and said profit may decline again in 2012, reflecting an uncertain retail sector and costs of sprucing up its stores.

Profit excluding unusual items fell to $76 million in the 12 months ended July 31, from $83.4 million a year earlier.

Net profit climbed to $77.8 million from $60.2 million in the previous year, when it took a $22.8 million charge on changes to depreciation rules. Sales fell 0.3 per cent to $1.67 billion.

The New Zealand dollar recently traded at US82.17 cents, up from US81.78, with solid performance by global equities helping the kiwi shrug off some the weakness from the Reserve Bank's dovish monetary policy statement.

- BusinessDesk