NZ stocks: Global rebound lifts sharemarket

12.30pm

A bounce in international equities markets yesterday helped the New Zealand sharemarket higher in morning trade today.

By 11.30am the benchmark NZSX-50 gross index was up 10.24 points at 2594.39 while the NZSX-All capital index was up 2.94 points at 878.42.

Market leader Telecom was up 4c to 561 on turnover worth $10.37 million.

There is likely to be relief buying in the stock following the decision of Communications Minister Paul Swain not to force the unbundling of the local loop network. He stuck with the recommendation of the Telecommunications Commission Douglas Webb to only force an opening of the broadband network for unbundling.

Total market turnover was worth $25.69 million with 44 rises and 20 falls among the 116 stocks traded.

ASB Securities' Stephen Wright said rises on overseas markets yesterday and an increased takeover bid for wood processor Tenon had set the stage for gains today on the NZX.

"It's certainly up as we suspected it would be, but it's very quiet though."

"Even on a modest bounce there's so much uncertainty around that no one is going to commit themselves big time to the market."

In the latest in a flurry of recent initial public offers Canwest said it was planning a $119 million offer of 68 million fully-paid shares in a new company CanWest MediaWorks (NZ) Ltd. The new company will acquire CanWest's existing New Zealand media operations including TV channels TV3, C4 and its New Zealand radio operations.

Elsewhere wood processor and takeover target Tenon, was up 6c to 194.

Rubicon today upped its partial takeover offer for Tenon by 10 cents a share to $1.95.

Yesterday, US hedge fund Perry Corp, one of Rubicon's two major shareholders, was yesterday unmasked as a 4.99 per cent shareholder in Tenon.

Rubicon's other major shareholder, Guinness Peat Group, has said it will accept the Rubicon offer for its 2.17 per cent stake in Tenon.

If Perry follows suit, Rubicon will have just over 27 per cent of Tenon.

Rubicon shares were down a cent to 83.

Mr Wright said the two Fisher & Paykel stocks were showing some movement ahead of their results due out tomorrow.

Appliances was up 5c to 457, and Healthcare was up 20c to 1240.

Sky City was 2c to 463 despite gaining Commerce Commission clearance yesterday for its plan to buy a 40.5 per cent stake in Christchurch Casino.

The Warehouse was up 1c at 444, following yesterday's announcement that Britain's Ian Morrice has been appointed the group's new chief executive.

Hirequip was up 2c to 106 after announcing it was to buy generator hire business Power Hire Ltd for $11.3 million in cash and shares.

Other stocks on the move in morning trade included: Auckland International Airport up 4c to 660, BayCorp Advantage up 3c to 303, Cart Holt Harvey up 2c to 210, Contact Energy up 2c to 558, Fletcher Building up 2c to 443, Infratil down 3c to 307 following its result this week, Michael Hill up 4c to 589 and Sky TV up 7c to 529.

Wellington Drive Technology fell 5c, or 10 per cent to 50c.

In the US, stocks rebounded from lows hit in the previous session with the Dow Jones industrial average up 61.60 points at 9968.51, Standard & Poor's 500 Index up 7.39 points at 1091.49, and the Nasdaq Composite Index up 21.18 points to 1897.82.

- NZPA