NZ stocks: Sharemarket trades sideways

6.15pm

The listing of iconic New Zealand brand Feltex and the news that Rubicon was successful in its partial takeover bid for Tenon dominated an otherwise uneventful day on the sharemarket today.

In sideways trading, the benchmark NZSX-50 gross index was down 1.19 at 2612.40 points, while the NZSX-All capital index was up 0.21 at 879.21 points.

Turnover was a moderate $96 million.

Bellwether stock Telecom was unchanged at 551.

Carpet maker Feltex had a disappointing initiation to the sharemarket today. In early trading its shares fell 4.7 per cent from the 170 issue price, to 162, before recovering to 165 by the close of trading.

Matt Willis of ABN Amro Craigs questioned the efficiency of the process behind settling on Feltex's issue price.

"Feltex is a good company and their projections are sound as well. So one can only come back to the pricing process and wonder if that was an efficient one," he said, noting the issue price was set only a week ago.

"Market conditions haven't changed between the price being set and today. If anything there's a slightly more buoyant tone to the market," Mr Willis said.

Fellow carpet maker Cavalier was up 4c to 485.

Newsmakers of the day, Tenon and Rubicon, moved only slightly today after Rubicon announced it had acceptances for 58 per cent of the wood processor.

The bid for a 50.01 per cent stake came down to the wire, with Rubicon starting yesterday, the final day of the offer, with just 43.8 per cent acceptances. By late yesterday afternoon AMP Capital Investors accepted Rubicon's $1.95 a share offer for less than half of its 6.85 per cent holding leaving the bid's success in the hands of smaller investors.

Tenon shares were down 1c today at 19, while Rubicon was up 1c at 85.

While Mr Willis was surprised Rubicon had succeeded, he was not surprised Tenon's share price had held relatively steady.

"Given how well the business is going I'm not surprised to see the price not move from here. I think Rubicon is all factored in," he said.

Other stocks on the move today included: Carter Holt Harvey down 1c at 202, Contact Energy up 6c at 575, Michael Hill Jeweller up 4c at 590, Lion Nathan down 12c at 725, Auckland International Airport down 6c at 677, NZX down 6c at 869, Sky Network TV up 5c at 540, TrustPower up 4c at 414 and Turners Auction down 3c at 502.

Of the 147 stocks traded today there were 49 rises and 48 falls.

- NZPA