The New Zealand sharemarket posted solid gains today, helped by a recovery in Fletcher Building and rises in offshore markets where investors are more confident about the global economic recovery.
The benchmark NZX-50 index closed up 39.725 points, or 1.259 percent, at 3195.803. Turnover was worth $140.19 million. There were 61 rises and 16 falls among the 111 stocks traded.
James Snell, a broker at First NZ Capital, said the rise followed better markets offshore, which were driven by budget cuts in Spain, a better bond auction in Portugal and optimism that the new government in the United Kingdom will reduce spending.
"The political story is helping sentiment," he said.
Fletcher Building rose 24c to $8.08. The stock had been a laggard in a recovering market yesterday and was catching up with a strong building sector in Australia.
"It looked like there was a reasonable seller in the stock but volume is bigger on the way up," Mr Snell said.
Contact Energy rose 2c to $6.16, even though its operating update revealed lower customer numbers. TrustPower rose 4c to $7.30.
Guinness Peat Group, under pressure since its annual meeting, rose 3c to 85.
AMP rose 21c to $7.56 as it held its annual meeting in Australia. Tower rose 2c to $1.94. APN News & Media rose 12c to $3.11.
Telecom rose 1c to $2.11, and remains close to its record low.
NZX rose 3c to $1.80, NZOG rose 3c to $1.53 and Goodman Fielder rose 3c to $1.81.
Others to firm included Sanford, which was up 5c to $4.33; New Zealand Farming Systems Uruguay, which was up 3c to 41c; Steel & Tube, which was up 10c to $2.60; Infratil, which was up 1c to $1.68; and OceanaGold, which was up 32c to $3.80.
Cavalier Carpets fell 10c to $2.55, NZ Refining was down 7c at $3.48, The Warehouse dropped 1c to $3.64, Scott Technology shed 3c to finish at $1.17 and Turners and Growers declined 3c to $1.42.
US stocks capped their best three-day run in 10 months on Wednesday, boosted by technology and industrial shares, after Spain unveiled an austerity plan that reassured investors Europe was addressing its fiscal ills.
The Dow Jones industrial average rose 148.65 points, or 1.38 percent, to 10,896.91. The Standard & Poor's 500 Index added 15.88 points, or 1.37 percent, to 1171.67. The Nasdaq Composite Index gained 49.71 points, or 2.09 percent, to 2425.02.
