31 Jul 2008

NZ market withstands Warehouse drop

1:25 pm on 31 July 2008

A plunge in the share price of The Warehouse has failed to dent the overall market, with the NZX 50 index up 39 points to 3326 on turnover of $51 million.

At 1pm on Thursday, The Warehouse was down 63 cents at $3.19 after the Court of Appeal blocked the Foodstuffs and Woolworths supermarket groups, from making takeover offers for the retailer

Telecom was up 12c to $3.80, Contact Energy was up 5c to $8.40 and Fletcher Building was up 5c to $6.45

Auckland International Airport Ltd was up 3c to $1.97 and Sky Network TV was up 11c to $4.61

PGG Wrightson was up 3c to $2.68 after it took a 51% stake in an animal health business in Uruguay - a move that it says will boost profit in its South American operations by 15%.

In the currency markets: at 1pm on Thursday, the New Zealand dollar was trading at US73.33 cents, 77.74 Australian cents, 37.03 pence, 79.19 yen and 0.4704 euro. The Trade Weighted Index was at 65.82.

The Australian share market also opened higher. At 1015 AEST on Thursday, the S&P/ASX200 index had jumped 70.1 points, or 1.42% to 5006.9, while the broader All Ordinaries leapt 66.6 points, or 1.33%, to 5073.5.

The September share price index futures contract added 95 points, or 1.94% to 4990 on volume of 5,219 contracts.

Other markets

Dow industrials and S&P 500 rose on Wednesday despite a rise in oil prices after moves by central bank efforts to boost liquidity in financial markets.

The US Federal Reserve and other central banks said they would boost measures to stabilize financial companies struggling with credit losses.

The Dow Jones industrial average shot up 186.13 points, or 1.63%, to 11,583.69.

Standard & Poor's 500 Index advanced 21.06 points, or 1.67%, to 1,284.26. The Nasdaq Composite Index gained 10.10 points, or 0.44%, to 2,329.72.

Trading volume was light on the New York Stock Exchange, with about 1.47 billion shares changing hands. Volume was high on the Nasdaq, with about 2.27 billion shares traded.

European shares rose sharply on Wednesday. Tthe pan-European FTSEurofirst 300 index ended up 1.6% at 1,180.75 points, after rising 0.3% in the previous session.

In Britain, the FTSE 100 closed 101.5 points higher, 1.91%, at 5,420.7.

Financial stocks gained with HSBC up 2.7%, Royal Bank of Scotland up 3.9% and BNP Paribas gaining 2.3%.