NZ stocks: Blue-chip surge lifts market on slow day

A minor spurt among blue chips lifted the share market to a higher close yesterday, as newly listed Fisher & Paykel Healthcare continued to grab the spotlight in a generally subdued session.

The NZSE-40 capital index ended up after trading lower during most of the day. It rose 4.05 points, or 0.2 per cent, to 2013.74.

Brokers said the market, flush with funds from takeover activity as well as portfolio interest in specific stocks, was looking to consolidate above the 2000 mark.

Rises led falls 58 to 50. Total volume was worth $64.5 million.

Salomon Smith Barney head of equities Craig Robins noted that volumes were relatively modest as investors paused for breath after a recent string of corporate news attracted heavy trading and supported the index.

Fisher & Paykel Healthcare closed up 3.2 per cent, or 48c, at $15.69.

Fisher & Paykel Industries' appliance and finance divisions, now Fisher & Paykel Appliances Holdings, fell 80c to $8.80.

Telecom, which has been capped near $4.90 after hitting a two-month high on Tuesday, closed a cent up at $4.85.

Mr Robins said the market was looking for a fresh catalyst following Telecom's slightly better-than-expected first quarter results on Tuesday.

Auckland Airport was up 1.4 per cent, or 5c, at $3.80 on late buying. Discount retailer The Warehouse recouped its Wednesday losses to end up 9c, or 1.4 per cent, at $6.60.

Carter Holt Harvey added to its recent gains, ending up a cent at $1.56. Brokers said a slight shift in recent weeks toward some of the resources stocks, especially in Australia, might have prompted interest in Carter Holt.

Technology concern Advantage Group posted a 14 per cent gain, or 5c, to 42c as the company announced a further addition to its board to strengthen corporate governance.

Takeover target Contact Energy continued to drift below Edison Mission Energy's takeover bid of $4.14 a share, which some brokers said was an indication the bid would not succeed.

Fund managers and analysts maintained that Edison's new bid - which topped an earlier $3.85 a share offer - still fell below fair value.

Frucor Beverages, which is being pursued by France's Groupe Danone, closed a cent lower at $2.45. The market is awaiting an independent valuation report on the takeover offer, and some analysts are betting Danone's bid will be declared below fair value.

Biotechnology concern Rubicon ended flat at 66c. The company announced a net profit of $30.7 million yesterday, but that was partially offset by a write-down of the carrying value of its investments in Fletcher Forests and Genesis Research & Development.

Meat processor and exporter Richmond closed lower by 1.9 per cent, or 5c, at $$2.60. The company said it planned to tap the local debt market for the second time in a year with the issuing of up to $50 million of unsecured, subordinated capital notes. Casino operator Sky City continued to soak up demand after it announced a two-for-one share split. Sky closed up 10c at $12.45.