12.00 pm
The New Zealand sharemarket was flat in morning trading with Fisher & Paykel Healthcare building on its strong debut yesterday but the Appliances division off on profit taking.
The NZSE-40 capital index opened almost flat, down 0.58 points, at 2009.11, on turnover of 8.2 million stocks valued at $34.8 million.
Nigel
Scott of ABN Amro said the F&P Healthcare stocks had another good night on the Nasdaq, closing at $US25.80 ($62.12) and rose 49 to 1570 in New Zealand. F&P Appliances was down 50c at 910.
"F&P Healthcare traded up overnight pretty aggressively, nearly all the initial float numbers have gone through in the US. A little bit of profit-taking, just drifting off a bit, a very strong debut yesterday," Mr Scott said.
Brokers were scratching their heads yesterday about the new companies' share price.
Stock exchange officials were forced to revert to complicated formulae to set the prices -- the opening prices were theoretical and the strange closing movements reflected the combined company's value to shareholders on Friday, rather than its Friday share price.
They were also influenced by the value of Fisher and Paykel Healthcare shares in the United States.
Elsewhere on the market, casino operator Sky City was up 3c at 1238 ahead of its two-for-one share split tomorrow.
The split will push the top performing shares below the key $10 mark, improving the stock's liquidity and attractiveness to investors despite the dilution.
New Zealand investors typically avoided stocks priced above $10.
Contact Energy was up 1c at 405 ahead of its 11c dividend payment on November 23 to investors on the register by tomorrow.
It was hard to gauge how Edison Mission's takeover bit was progressing. Edison is seeking at least 90 per cent of Contact before proceeding with its $4.14 per share offer, which would increase to $4.25 with the 11c dividend.
"The market price is saying lack of success because people thought it was going to go through and get the 90 per cent then it would probably be a lot closer to $4.25. So the marketplace is still anticipating either not successful, or (Edison) upping the bid."
The independent valuation of another takeover target, drinks maker Frucor, was expected out later today. Frucor shares were unchanged at 246.
Rubicon was unchanged at 66c after announcing a first half net profit of $30.8 million, largely made up of one-off items.
- NZPA
