NZ stocks: Buoyant day's trading on sharemarket

6.00pm

The sharemarket surged ahead during a buoyant day's trading today.

The benchmark NZSX-50 gross index was up 15.63 points at 2613.59, while the NZSX-All capital index was up 4.87 points at 879.

Market leader Telecom was up 2c at 551c on turnover worth $33.7 million.

Total market turnover for the day was worth $103.9 million.

Matt Willis of ABN Amro Craigs said today's positive tone followed somewhat muted trading lately on the back of inflationary pressures such as rising oil prices, coupled with talk of rising interest rates.

"I don't know what's driving this market. It's really been in a holding pattern for the last few weeks," he said, noting that most major stocks rose strongly today.

Rubicon's partial takeover bid for Tenon ended at 5pm today, and looks to be down to the wire.

Rubicon was seeking a 50.1 per cent stake in Rubicon. Before trading started today Rubicon said it had received acceptances for its takeover offer equal to 43.8 per cent of Tenon.

This was further bolstered late this afternoon when 6.85 per cent shareholder AMP Capital Investors said it was selling part of its stake.

Mr Willis said the outcome will probably be known tomorrow.

Rubicon was up 1c at 84, while Tenon was up 1c at 192.

Contact Energy was up 6c at 569. Mr Willis said there were rumours that a trade sale of Edison Mission Energy's 50 per cent stake in the company is imminent.

"Obviously a trade sale is going to be favourable from a share price point of view. But once the M&A activity disappears the market can then concentrate on the equity story," Mr Willis said.

Macquarie Goodman Property Trust (MGP) was down 1c at 99, after announcing it is to buy Auckland office block HP House for $25.8 million from Kiwi Income Property Trust (KIP) subsidiary Kiwi Property Holdings. Kiwi Income was unchanged at 107.

Elsewhere across the top 50, Restaurant Brands was up a cent to 122 following its lively annual meeting yesterday. The company's top executives faced shareholder criticism over the drop in profits in recent years.

Of the 140 stocks traded there were 63 rises and 31 falls.

Other stocks on the move today included: Carter Holt Harvey up 2c at 203, Fisher & Paykel Appliances up 7c at 467, Nuplex up 6c at 526, Sky Network TV up 4c at 535, Fletcher Building up 7c at 439, Cavalier up 5c at 481, Independent Newspapers Ltd up 10c at 497, NZ Refining up 20c at 1970, Ports of Tauranga up 15c at 525 and TrustPower up 4c at 410.

- NZPA