NZ stocks: Market firms amid continued interest in Powerco

12.15pm

After a slow start this morning the benchmark sharemarket indices firmed on yesterday's record high, amid continuing interest in Powerco.

Takeover target Powerco topped early turnover again today, with trades worth $16.1 million. The stock was up 4c at 212, after a deal-saving solution was announced last night.

There had been speculation Powerco's majority shareholders would end up with more bonds than they had agreed to due to scaling.

But last night Australian company Prime Infrastructure agreed to put up more cash while the New Plymouth District Council's advisers, PricewaterhouseCoopers (PWC), have found a Sydney-based buyer for any bonds beyond the original agreement.

An amended takeover offer was being sent to shareholders today.

Trading in Air New Zealand was suspended before the market opened after Singapore Airlines said it was selling its 6.5 per cent stake in the Government-controlled airline by way of a bookbuild tender. Shares in Air NZ last traded yesterday at 168.

Total market turnover by 11.35am today was $35.6 million, $10.1 million of which was accounted for by Telecom, which was unchanged at 599.

By 11.35am the benchmark NZSX-50 gross index was up 2.20 points to 2860.31, while the NZSX-All capital index was up 0.52 of a point at 949.37.

NGC Holdings was up 1c at 310. Indicative bids for NGC are due tomorrow for the 66 per cent stake in the company held by AGL of Australia.

Of the 121 stocks traded by 11.35am, there were 45 rises and 25 falls.

Stocks on the move included: Auckland International Airport down 5c at 710, Contact Energy up 3c at 606, Turners & Growers down 4c at 343, Cavalier down 17c at 482, Toll NZ down 5c at 265 and ANZ up 14c at 2069.

- NZPA