NZ sharemarket rallies strongly after four days of falls

The S&P/NZX 50 Index traded strongly in the afternoon and closed at 12,491.58, gaining 267.05 points or 2.18% and snapping four successive days of falls.

It was the second-biggest single-day rise this year after the index rose 2.68% to 11,867.29 on May 31.

Trading was again heavy on volumes of 48 million shares worth $167.49m.

Greg Smith, head of retail with Devon Funds Management, said the local market staged a big relief rally. The recent capital raisings had taken a lot of wind out of the market’s sails as investors freed up cash.