NZ stocks: Market firms as Edison lifts bid for Contact

12.00 pm

The sharemarket firmed moderately today as Edison Mission upped its bid for third ranked stock Contact Energy.

Edison upped its bid to $4.25 a share excluding the 11cps final dividend from its earlier bid of $3.85/share. That values the company at $2.45 billion. Contact shares rose 3c to 415.

Today's market also reflected a bounce on Wall Street. The Dow Jones industrial average charged 163.99 points, or 1.81 per cent, to 9239.13. Dismal monthly manufacturing data was offset by news that Microsoft Corp, the world's largest software maker, had negotiated a tentative agreement with the Justice Department to settle a three-year antitrust battle.

The NZSE40 capital index was up 9.17 points at 1974.00 on a turnover worth $26.6 million by shortly after 11am.

Fisher and Paykel surged 37c to a new record of 1470 ahead of its half year results due out today, and of its healthcare division list on the Nasdaq.

There was heavy trade in F&P worth $5.9 million.

Market leader Telecom also chugged along on mostly pre-market trading -- at 9.30am it remained steady at 460 on a one million share-turnover.

Auckland Airport was also enjoying reasonable gains, rising 5c to 353.

Another takeover target Frucor was also trading higher than its offer, but after earlier rising 1c to 243, it fell back to 241. It topped the turnover with two million shares traded worth nearly $5 million.

Other rises included Sky City up 4c to 1240, Carter Holt Harvey up 1c to 145, Steel and Tube up 5c to 255 and the Warehouse up 4c to 659.

Falls Fletcher Forest down 1c to 24, and United Network down 10c to 835.

There were 30 rises and 11 falls on 75 stocks traded.

- NZPA