Wellington - The New Zealand stock market bounced back Friday in the wake of the recovery on Wall Street as investors snapped up bargains after share prices fell by 5 per cent the previous day.

The benchmark NZX 50 index was up 68 points to 2,832 in the first two hours of trading, a gain of more than 2 per cent.

Telecom New Zealand, the biggest company on the board, accounted for more than 45 per cent of turnover as buyers moved in following Thursday's 8.6 per cent fall in price to 2.23 New Zealand dollars (about 1.36 US cents), its lowest level in more than 16 years.

It improved four New Zealand cents in early trading. (dpa)