NZ market up over 1 pc

By AARON LIM - BusinessDay.co.nz | Monday, 13 October 2008

After starting the day lower, the New Zealand market reversed early losses and was up over 1 percent in afternoon trading.

The benchmark NZX 50 started the day 20.734 points down at 2784.58, after falling 5 percent last Friday.

By early afternoon, the index reversed early losses, to move into positive territory, up 40.232 points, or 1.4 percent at 2845.541. 

Fletcher Building was up 33c to $6.19 in early afternoon, after taking a battering last week. Telecom rose 10c to $2.66.

Banking stocks were among the gainers, with ANZ up 143c to $18.70. Westpac was up 180c to $24.00.

Fisher and Paykel Appliances rose 3c to $1.38, trimming losses early in the session

Contact Energy was up 5c at $7.25 in afternoon trading

After a volatile week, the New Zealand dollar was trading at US61.22c in early afternoon, gaining slightly from the morning when it traded at US60.19c.

Across the ditch, the S&P/ASX 200 index jumped 6 percent in early trading, up 225 points to 4184

Prime Minister Helen Clark revealed yesterday that the Government will guarantee all savers' deposits, taking on a liability worth up to $150 billion to reassure local investors spooked by the worsening international crisis.

The government's contingent liability in guaranteeing savings deposits was huge "but it just wont be called upon," Reserve Bank Governor Allan Bollard says.

The likely liability, he said, was "very very small".

Speaking on Radio New Zealand's Morning Report he said the bank deposit government guarantees will not lead to a flight of cash between institutions with the guarantee and those without.

Australia also announced similar measures in a move to prop up badly shaken investor confidence.

 Under the Australian plan, all deposits in the country's banks, building societies and credit unions, would be guaranteed by the Australian government for the next three years, Australian Prime Minister Kevin Rudd said.

US stock futures rose on Sunday evening trading on the prospects of further aid to badly rattled money markets. S&P 500 futures rose 29.8 points. Dow Jones industrial average futures rose 252 points, and Nasdaq 100 futures climbed 31.25 points.