The New Zealand sharemarket followed global markets up today on the back of positive economic data from the United States and China, after a worldwide selloff in equities last week.
The NZX 50 was up 62.54 points, or 1.5 per cent, to 4379.53 this afternoon, with 39 stocks gaining, 7 declining, and four unchanged.
Craigs Investment Partners head dealer Bryon Burke said today’s gains would be a relief to investors after a five-day run of losses on the local bourse.
Big stocks which are popular with international investors, such as Sky Television, Telecom and Fletcher, were helping boost the market, he said.
Asian shares edged higher to reverse a four-day losing streak yesterday, as investors took comfort from strong US data and assurances from China’s central bank to provide funds to institutions if needed, Reuters reported.
Global equity markets and the US dollar rose on Tuesday after US economic reports ranging from manufacturing and housing to consumer confidence buoyed optimism – after days of uncertainty around the Federal Reserve’s intentions for tapering of its stimulus package.
The Standard & Poor’s 500 Index was up 0.95 per cent.
New Zealand’s sharemarket had tracked higher as Australia and Asia woke up, Burke said.
The recent decline in the New Zealand dollar, which sat at US77.35c this afternoon, was making local shares more appealing to international investors, he said.
Investors would be pleased with today’s gains, Burke said.
«However, one day doesn’t make summer.»
Prior to the recent fall in local stocks the market had experienced three months of gains, Burke said.
«Prices were getting a bit stretched.
«It was hard to get a bargain, because there weren’t any.»
Vital Healthcare, the medical clinic real estate investor, was leading the gainers on the NZX early this afternoon, up 8.5 per cent to trade at $1.34.
Sky was trading up 4.5 per cent at $5.33, and Nuplex, the industrial chemicals manufacturer, was up 3.3 per cent to $2.84.
Fletcher Building, Telecom, and Fonterra Shareholders’ Fund were also up.
OceanaGold Corp led the decliners, down 3.3 per cent to trade at $1.45.
Xero, Fisher & Paykel Healthcare and Skellerup were also trading down.
Burke said overseas investors would be watching sharemarkets with caution, and looking for stability before buying shares.
Source: Stuff