NZ stocks: Sharemarket moves up in early trading

12.00pm

The sharemarket started the week off on a positive note this morning, with export stocks on the rise on the back of the faltering kiwi dollar.

The benchmark NZSX-50 gross index was up 9.56 points to 2574.29 while the NZSX-All capital index rose 2.29 points to 872.13 by 11.30am this morning.

Bellwether stock Telecom moved up 2c to 557.

Telecom's turnover was worth $8.1 million by 11.30am, in a total market turnover of $21.4 million.

Export stocks on the rise this morning included Fisher & Paykel Appliances up 5c at 446 and F&P Healthcare up 20c at 1230.

Restaurant Brands, which was the subject of a mysterious takeover bid late on Friday, moved up 4c to 135.

Little-known company King Win Laurel offered $1.50 per share for Restaurant Brands, which operates KFC, Pizza Hut and Starbucks.

Restaurant Brands said they had never heard of King Win and urged shareholders not to act on the offer, as they believed it did not comply with the Takeovers Code in a number of respects.

"I guess it's highlighted to the market that maybe they are a bit undervalued and maybe there's a few punters out there who are willing to back that there might be some sort of fire where there's smoke -- but to me it all looks like smoke and mirrors," said Bryon Burke of ABN Amro Craig.

Another takeover target, Wrightson, rose 1c to 140, making up for the cent it lost on Friday after its independent directors urged shareholders to reject the $1.50 bid by Rural Portfolio Investments.

Lion Nathan was unchanged at 736, after today signing a joint venture deal with Heineken to manufacture, import, market, sell and distribute Heineken in Australia.

In New Zealand, Heineken is currently bottled by Lion Nathan's main rival DB Group. DB is 76 per cent owned by Singapore-based Asia Pacific Breweries (APB) Group, which in turn is 42.5 per cent owned by Heineken.

In response to Lion Nathan's announcement DB Breweries said it will continue to brew Heineken for the New Zealand market but will stop producing keg beer for the Australian market.

DB Breweries was unchanged at 817.

Contact Energy was down 3c to 563 after shedding its 7 cents per shares dividend.

Others to go ex dividend today were Kirkcaldie & Stains, which was unchanged at 250 (ex div 5cps) and Calan Healthcare, down 1c to 88 (ex div 1.7167c cps).

Mr Burke said the light market turnover was a reflection of the interest in new capital raising, with a lot of market participants focused on soon to list companies, such as Just Water and Feltex.

Another initial public offering was launched today, with leading children's clothing chain Pumpkin Patch saying it aimed to raise between $97 million and $113 million during a two-week institution-only offer.

Of the 110 stocks traded by 11.30am, there were 28 rises and 32 falls.

Stocks on the move by 11.30am included: Cavalier down 3c at 487, Fletcher Building up 2c at 430, Michael Hill Jeweller up 5c at 595, and Sky Network TV up 1c at 519.

- NZPA