NZ stocks: DB bid provides fizz for flat NZ sharemarket

5.50pm

Asia Pacific Breweries' bid for DB Group provided the fizz for a flat sharemarket today.

Heineken-controlled APB bid at 950, a 20 per cent premium on Friday's price, for the 23 per cent it did not own and already had acceptances from some major outstanding shareholders.

DB's price jumped 150 to a record 940.

Brokers described the offer price as realistic and believe the institutions that has held out four years ago at the bid then price of 228 were much more likely to sell given the stocks great run.

"At this kind of premium it stands a much, much better chance than the...attempts in the past," said Macquarie Equities investment director Arthur Lim said.

Early in the session APB said ACC and several other investors had accepted, to boost its holding from 76.9 per cent to 87.1 per cent.

The benchmark NZSX-50 index finished down 0.14 of a point at 2741.41, while the NZSX-All capital index closed up 1.40 points at 922.74.

First NZ Capital broker James Snell said the market was "skinny" and there were a number of stocks at year highs.

Turnover was moderate at $80 million.

"This reporting season is going to be a good one. The question is when does the market price in a slowdown.

Shares in market heavyweight Telecom closed down 2c at 599.

Hamilton Hindin Greene broker Grant Williamson said APB's bid had long been expected.

"It does seem a very good price, too," he said.

Stock exchange operator NZX jumped 4.24 per cent, or 35c, to 860 after a line of 766,000 were sold at 855.

Hellaby, which had been bubbling along around 500 since September last year, continued last week's break-out today. The company, which will report on August 27, jumped to a new closing high of 555, up 14c.

Pumpkin Patch rose to new highs, with an 8c gain to 163. The company last Monday announced a profit upgrade.

Fishing company Sanford, which has retreated from 517 at the start of the year, is another to have had a good 10 days, rising another 15c today to 460.

Fisher & Paykel Healthcare built on last week's gain following the announcement of a new humidifier product to be used in keyhole surgery. It rose another 10c to 1325 today.

Carter Holt retreated further in the wake of its poorly received second quarter profit reported on Thursday. It dropped 5c to 210 today.

Retailer Hallenstein Glasson rose 7c to 347 -- a 10 year high.

Contact Energy continued to shake off the low 567 bid for Edison's holding last week. It rose 4c to 598 to leave Origin's takeover offer in the dust.

Powerco, rumoured to be a possible takeover target of NGC, rose 3c to 213.

Ryman Healthcare rose 10c to 276 after announcing an expansion of its Wellington operations.

Independent Newspapers maintained its strong form, rising 6c to 476 while its two thirds owned TV company, Sky TV, rose 5c to 525.

Ports of Auckland rose 9c to 700, Cavalier rose 6c to 506 and Nuplex rose 7c to 527.

The Warehouse climbed 2c further to 435 off its July 13 trough of 402.

ING Property Trust closed unchanged on 107 after it confirmed it had bought the Citibank Centre in Auckland for $30.5 million.

ING said the purchase price has been confirmed as fair value by independent valuer. Shares in ING were unchanged at 107c.

Comvita fell 2c to 266 after it posted a June half net profit of $673,900, up 11.5 per cent on the same period last year.

Toll fell 3c to 182 although came off its 179 low.

Vertex fell 3c to 166 despite a reasonable upbeat report to shareholders at the annual meeting in Auckland today.

AMP fell 13c to 687 and fellow insurer Tower fell 2c to 179.

- NZPA