The sale of Fletcher Forests forest estate was the highlight of quiet morning trade on the New Zealand stock market.
At 11.30am benchmark indices lurked around their opening levels on thin early trade after a brief foray higher on opening.
The NZSX-50 gross index was 0.7 points or 0.03 percent higher at
2397.33 while the NZSX-40 capital index was a negligible 0.19 of a point higher at 2225.75. Turnover was a relatively skinny $14.98 million on 35 rises and 26 falls among the 104 stocks traded.
The indices bumped higher on opening as closely watched Australasian financial services giant AMP and lead stock Telecom made immediate gains. These were offset however by falls in second tier stocks Carter Holt Harvey and Fletcher Building.
But Direct Broking's Brett Wilkinson said the highlight this morning was Fletcher Forests which was 4c higher at 137 by 11.30am after confirming it was to sell its 106,000ha forest estate to a consortium led by Kiwi Forests Group for $725 million.
The sale will see the company pay investors $1.20 per share. "Investors have to make up their mind now how they value the residue of the company", Mr Wilkinson said.
"The shares are still trading at discount to our valuation but nevertheless a good result for the patient Fletcher Forests investors".
Rubicon which owns 19.9 percent of Fletcher Forests was up a cent at 80.
AMP was 9c higher at 549 by 11.30am. Yesterday it made a strong debut on Australia's and New Zealand's markets as a pure Australasian financial services company having demerged from its troubled British businesses.
Market heavyweight Telecom was up 2c at 516. The stock's movement's often reflect activity on overseas markets, yesterday Wall St's Dow Jones index finished higher for the third consecutive session. But Mr Wilkinson downplayed any link between Telecom's mild gain and the Dow's good overnight performance.
"It would be fair to say our market has been lacklustre and slightly disappointing over the last week when the Dow has moved 400 points higher."
Carter Holt Harvey was 2c lower at 182, and Fletcher Building was 5c lower at 409.
Ports of Auckland was up 3c to 763. Mr Wilkinson said it seemed to have found support at these levels after yesterday "plumbing a low of 755", after learning it was to lose a substantial chunk of Fonterra business to Port of Tauranga which this morning was up 4c to 427.
Other stocks move in early trade included: Air NZ down a cent to 46, Auckland International Airport down a cent to 697, Freightways up 2c to 217, Independent Newspapers Ltd up a cent to 493, Michael Hill up 3c to 483, NZX down 6c to 569, Restaurant Brands up a cent to 113, Sanford up 2c to 510, Steel & Tube Holdings down 2c to 373, TelstraClear down 4c to 546, Tranz Rail up 4c to 160, Turners Auctions up 3c to 450, and Waste Management down 3c to 402.
On offshore markets overnight, the USA's blue-chip Dow and the broader Standard & Poor's 500 ended at their highest levels in about 19 months for a third straight day. The Dow Jones industrial average climbed 102.82 points, or 1.01 percent, to 10,248.08. The S&P's 500 Index rose 12.70 points, or 1.18 percent, to 1089.18, and the technology-laced Nasdaq Composite Index gained 34.85 points, or 1.81 percent, to 1956.18.
In London, the FTSE 100 closed at 4397.3 points, up
43.1 or 0.99 percent.
Germany's DAX index ended at 3870.88 points, up 23.31
or 0.61 percent, and Japan's Nikkei average closed up 11.36 or
0.11 percent at 10,104.00.
- NZPA
The sale of Fletcher Forests forest estate was the highlight of quiet morning trade on the New Zealand stock market.
At 11.30am benchmark indices lurked around their opening levels on thin early trade after a brief foray higher on opening.
The NZSX-50 gross index was 0.7 points or 0.03 percent higher at
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