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NZ sharemarket makes small early gain

The New Zealand sharemarket made a small gain in early trading as markets digested details of the Federal Reserve plan to breathe new life into the struggling United States economy.The Fed committed to buy $600 billion ($NZ785 billion) more in government

NZPA
Thu, 04 Nov 2010

The New Zealand sharemarket made a small gain in early trading as markets digested details of the Federal Reserve plan to breathe new life into the struggling United States economy.

The Fed committed to buy $600 billion ($NZ785 billion) more in government bonds by the middle of next year. The decision, which takes the Fed into largely uncharted waters, was aimed at further lowering borrowing costs for consumers and businesses still suffering in the aftermath of the worst recession since the great depression.

The size of the plan was greater than had been anticipated but less than many hoped.

Around 10.20am the benchmark NZX-50 index was up 3.24 points to 3336.32, after touching its highest point in nearly seven months, just below 3337 points, a few minutes earlier. Yesterday it ended up 8.3 points.

Nuplex added 2c to 355 early, Sky City was up 2c to 321, while Xero added 3c to 173, equal to its previous high reached two weeks ago.

Fisher&Paykel Healthcare lost 2c to 318, Telecom gained 1c to 207, while Fletcher Building lost 1c to 821 and Contact Energy slipped 1c to 599.

In the US, stocks ended a volatile session modestly higher.

Both the Dow Jones industrial average and the Nasdaq Composite Index closed at levels not seen since 2008 while the Standard&Poor's 500 Index ended at a six-month high.

The Dow Jones was up 0.2 percent at 11,215.13, the Standard&Poor's 500 Index was up 0.4 percent at 1197.96, and the Nasdaq Composite Index was up 0.3 percent at 2540.27.

Strong gains by Republicans in the US mid-term election was seen as opening the way for a more business friendly government.

NZPA
Thu, 04 Nov 2010
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NZ sharemarket makes small early gain
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