NZ stocks: Market continues to rise

12.15pm

The sharemarket continued to rise this morning, powered by interest in takeover target Powerco.

By 11.35am today the NZSX-50 gross index had risen 10.63 points to 2837.46 and the NZSX-All capital index was up 3.51 points at 942.83.

ABN Amro Craigs broker Bryon Burke said the market was buoyant in morning trade, continuing the positive trend of the past few days.

Powerco again dominated turnover, racking up trades worth $10.7 million. The stock's price was unchanged at 211, still 4c shy of the takeover offer by Australia-based Prime Infrastructure. Prime is looking to build on its existing 53.65 per cent cornerstone in Taranaki-based Powerco with the offer which would see New Zealand shareholders paid in perpetual bonds and cash. An exemption by the Takeovers Panel allows overseas shareholders to be paid in cash only. But yesterday the panel said the exemption had led to "unforeseen implications" -- namely the high number of investors with offshore addresses taking advantage of the offer.

Top stock Telecom was up 3c at 594, on turnover worth $4.76 million. Total market turnover by 11.35am today was worth $37.3 million.

Contact Energy was up 1c to 601, adding to its 10c gain yesterday.

The stock had slumped 13c on Monday, after independent directors said a $5.57 per share takeover offer by Australia's Origin Energy was unfair. Independent valuations put Contact at $5.74-$6.34 and $5.69-$6.29 a share.

Mr Burke said there had been strong interest in Turners & Growers which graduated to the main board from the unlisted market. It listed today at 320, rising shortly afterwards to 340.

"My understanding is that they were trading around $3.00 to $3.15 on the grey market...I think like any stock once it hits the actual regulated NZSX market it is more open to a whole batch of new investors," Mr Burke said.

Of the 121 stocks traded by 11.35am today there were 44 rises and 20 falls.

Other stocks on the move included: Carter Holt Harvey down 2c at 227, Fletcher Building up 7c at 592, Fisher & Paykel Healthcare down 5c at 1515, F&P Appliances up 5c at 417 and Auckland International Airport up 10c at 730.

- NZPA