The local bourse closed at a seven-month high yesterday, as passive funds moved to rejig their portfolios ahead of Fletcher Energy's exit from the market.
"There was basically a lot of redistribution of Fletcher Energy monies," Credit Suisse First Boston dealer David Price said.
"Most of the leaders had a very strong
day."
The benchmark NZSE-40 index closed up 48.84 points, or 2.36 per cent, at 2116.52 - its highest close since August last year.
Market turnover totalled $231.41 million, with Fletcher Energy making up the lion's share at $103.85 million. The stock closed up 1c at $9.43.
Energy will delist on Friday after the High Court last week approved its sale to Royal Dutch Shell and Apache Corp. The court also approved the planned separation of the rest of the Fletcher group.
Energy's departure will leave a large hole in an already lean market. It made up around 7 per cent of the market's total capitalisation.
Yesterday's reinvestment programme saw share prices rise across the board.
Telecom closed up 24c at $6.27, while Contact Energy added 8c to $3.09, just 1c below its $3.10 issue price.
Carter Holt also put on a strong show, closing up 6c at $1.96 on turnover worth $10 million, while Tower added 16c to $5.45.
Fishing company Sanford rocketed 46c to $6.11 as investors anticipate a healthy profit from a run of good news for the company.
Sanford shares are tightly held and there is little stock available. Chairman Douglas Goodfellow and his family, through Amalgamated Dairies and various trustees, own about 60 per cent of the stock.
John Rattray of JP Morgan said his brokerage had upgraded its valuation of Sanford from $5.90 to $7.25, partly because of the recent designation of New Zealand's hoki fisheries as a sustainable resource.
Other stocks to gain included Fisher and Paykel, up 10c at $8.50, INL, 19c at $3.89, Telstra, 10c to $7.80, Sky TV, 6c at $3.41, and The Warehouse, 17c at $6.12.
On the downside, tech companies took a battering after investors across the Tasman ditched their new economy portfolios in favour of the relative safe haven of blue-chip stocks.
Advantage Group led the local reaction, closing down 7c at 95c. The stock has fallen from a high of $5.65 last April.
Commsoft also fell from favour, slipping 8c to 20c.
Sky City closed down 3c at $9.42 after its one-day stand in the market for control of cinema and real estate company Force Corp failed to attract any sellers.
- NZPA
The local bourse closed at a seven-month high yesterday, as passive funds moved to rejig their portfolios ahead of Fletcher Energy's exit from the market.
"There was basically a lot of redistribution of Fletcher Energy monies," Credit Suisse First Boston dealer David Price said.
"Most of the leaders had a very strong
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