NZ stocks: Sharemarket falls, but Tenon still climbing

12.12pm

Takeover target Tenon continued to rise this morning despite the sharemarket venturing into negative territory.

The benchmark NZSX-50 gross index was down 5.40 points, or 0.21 per cent to 2599.41 at 11.30am. The NZSX-All capital index was down 1.34 points, or 0.38 per cent, to 879.07

Market leader Telecom was down 2c to 567.

Wood processor Tenon, which is the subject of a takeover attempt by Rubicon, was up 2c at 193, adding to the 9c the stock gained yesterday.

Rubicon was down 1c at 87.

Last Thursday, Rubicon offered $1.85 a share to secure a 50.01 per cent majority holding in Tenon, formerly known as Fletcher Challenge Forests, which is in the process of selling its 107,000ha forest estate. Rubicon currently owns about 20 per cent of Tenon.

Total turnover by 11.30am was 8.6 million stocks, worth $24.8 million.

Stephen Wright of ASB Securities said it was possible Rubicon was trying to "flush out" other potential buyers for Tenon.

With no other major corporate news out before midday, he said the rest of the day was shaping up to be a quiet one.

"It seems as if some investors, both locally and overseas, are still on holiday," he said.

Other stocks on the move included: Sky Network TV down 5c at 530, Auckland International Airport down 7c at 645, Fisher & Paykel Healthcare down 2c at 1224, Lion Nathan down 5c at 695, The Warehouse down 5c at 435 and Contact Energy down 2c at 546.

On the upside, Trustpower rose 7c to 412, Mainfreight was up 1c at 184, Michael Hill was up 5c at 555, NZ Oil & Gas was up 5c at 65,Turners Auctions up 3c at 434 and Nuplex up 4c at 484.

Of the 109 stocks traded by 11.30am, there were 27 rises and 33 falls.

In the US the Dow Jones industrial average fell 134.28 points, or 1.28 per cent, to 10,381.28. The Standard & Poor's 500 Index dipped 15.78 points, or 1.38 per cent, to 1129.42 and the Nasdaq Composite Index gave up 35.40 points, or 1.71 per cent, to 2030.08.

Britain's FTSE 100 share index closed up 26.1 points or 0.6 per cent to 4515.8 and in Japan the Nikkei average rose 0.71 per cent or 85.12 points to close at 12,127.82.

- NZPA