Strong day for market

Friday, 29 August 2008

August 29 – Close: The New Zealand share market closed higher today, led by rises in leading stocks after US stocks rose sharply. The benchmark NZX-50 index closed up 28.447 points at 3353.243.

"The main reason for the rise was Wall Street and the main beneficiary was Fletcher Building," said Grant Williamson of Hamilton Hindin Greene.

Fletcher Building rose 18c to 748.

The profit reporting season for the June 30 period is drawing to a close and there wasn't too much in it to worry investors.

Cavalier rose 6c to 281 after today reporting a 14 percent rise in profit. It was one of a deluge of results in afternoon trading.

"Investors are regaining some confidence in this market as more and more companies produce better than expected financial results.

"The doom and gloom is no longer there," Mr Williamson said.

NZ Oil & Gas eased 4c to 158 but was initially up after reporting a surge in full year net profit .

Investment company Hellaby Holdings was up 14c at 190, after yesterday reporting a $4.7m annual profit.

Telecom rose 1c to 327. Infratil rose 7c to 230. Dorchester eased 6c to 9c.

In the US, stocks rose sharply as new figures showed the US economy grew at a surprisingly robust clip in the second quarter and oil prices eased, driving gains in major industrial and financial companies.

The government said strong export growth and consumer spending helped US gross domestic product expand at a 3.3 percent annual rate between April and June, above an initial estimate of 1.9 percent.

The Dow Jones industrial average ended up 1.85 percent at 11,715.18. The Standard & Poor's 500 Index closed up 1.48 percent at 1300.68. The Nasdaq Composite Index ended up 1.22 percent at 2411.64.

NZPA