The keenly awaited release of conglomerate Fletcher Challenge's restructuring plans jump-started the New Zealand stock market, which closed more than 1 per cent higher.
The NZSE-40 capital index ended up 22.50 points at 1948.44, but smaller stocks eased. Falls beat rises 54 to 36 and turnover was a large $152.95 million,
Fletcher Energy accounting for $72.16 million.
That stock blasted ahead, gaining 139c to 924. The oil company is to be sold to Royal Dutch Shell and Apache Corporation for $4.6 billion, assuming competition watchdog the Commerce Commission gives clearance on Friday.
Fletcher Building, like Forests, is to be spun off as a stand-alone unit. It shed 15c to 205 and Forests - which was always the most problematic to offload - slumped further, dropping 12c to 50.
ABN Amro's head of institutional sales, Nigel Scott, said the market had not yet absorbed all the implications of the complex restructuring.
Ord Minnett's John Rattray said the market started off on the basis that reinvestment from the former Fletcher letter stocks was going to be significant, but there were still uncertainties. "So the market finished in a less enthusiastic way than it began," Mr Rattray said.
Mr Scott, while noting positives, said the hitherto moribund sharemarket would not be taking Fletcher's moves as a revitalising catalyst. "You're losing one company [Energy] and getting another company [Rubicon] of a different sort. But until you see a turning point in our currency we still rely quite a lot on the movement within the telco sector internationally." Telecom rose 5c to 560.
"The market has been long in Fletcher Energy so that is obviously going to provide some comfort and cash," Mr Scott said.
Tranz Rail, which revealed long-awaited details of its restructuring after the market shut, finished up 5c at 385. It also issued a profit warning for the first quarter. One broker said the Tranz Rail move would be positive for the company eventually.
Fisher and Paykel, up 12c to 710, and Lion Nathan, which gained 8c to 495, were the main beneficiaries from the Fletcher announcement.
Elsewhere, Air NZ's A shares rose 2c to 177 and the foreign Bs firmed 1c to 250. It announced that its Ansett Holdings would make a $20.5 million cash offer for Hazelton Airlines in NSW.
New biotech stock Genesis dropped 30c to 665, Contact Energy was up 2c to 260, Montana rose 4c to 322, and Sky City gained 10c to 683.
- NZPA
