New Zealand sharemarket up after strong lead from offshore

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 $3.18 and Skellerup rose 4c to 85c to its highest level since 2008. Both posted strong results.

Fletcher Building rose 7c to $7.68 and Contact Energy was unchanged at $5.61. Telecom eased 2c to $2.03.

Pike River Coal rose 2c to $1.07, Rakon rose 2c to $1.16 and Mainfreight rose 9c to $6.80. Infratil rose 3c to $1.68 and NZOG rose 2c to $1.20.

Ebos rose 11c to $6.86 and Fisher & Paykel Healthcare rose 6c to $2.98.

Guinness Peat Group eased 1c to 62c and NZX eased 1c to $1.39. TrustPower eased 9c to $7.16.

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.