NZ stocks: Stronger overseas equities push NZX boards higher

The New Zealand sharemarket jumped higher today on the back of a slew of corporate news and a bounce in international equities markets last night.

At 5pm, the benchmark NZSX-50 index was up 28.28 points at 2612.42, while the NZSX-All capital index was up 9.78 points at 885.20.

Bellwether stock Telecom led the way, its shares up 9c at 566 after Communications Minister Paul Swain today said he would not force the unbundling of the local loop network.

His move was in line with a recommendation by Telecommunications Commissioner Douglas Webb to only force an opening of the broadband network for unbundling.

Turnover in Telecom shares equated to 52 per cent of the $100.7 million turnover on NZX today.

There were 69 rises and 35 falls among the 145 stocks traded today.

ABN Amro Craigs broker Matt Willis said Mr Swain's decision was positive for Telecom, especially from an investor's point of view.

"Although, the threat of regulation will hang over Telecom for ever and a day," Mr Willis told NZPA today.

Also today, Rubicon upped its takeover bid for Tenon by 10 cents a share to 195c. It is still seeking to increase its current 19.99 per cent stake to a controlling 50.01 per cent.

Yesterday it was revealed that Rubicon shareholders US hedge fund Perry Corp and GPG owned a combined 7 per cent of Tenon, whose shares were up 6c at 194.

GPG has said it will accept the Rubicon offer price for its 2.17 per cent stake, but it remains unclear which way Perry Corp will jump.

"It's a bit of a cat and mouse game, that," Mr Willis said, noting Rubicon shares were up 1c at 85.

"The expectations (that) perhaps Rubicon's only game is to try and flush out another buyer."

In other market news, meat processor Richmond's March half net profit slumped to $433,000, from $14.2 million the previous year.

Shares in Richmond, which did not issue a dividend, were down 5c at 280.

Media company CanWest looks set to list on NZX, today announcing an initial public offering for June.

Fisher & Paykel Appliances second half earnings are due to be released tomorrow. Its shares were 15c at 467.

Sky City Entertainment was up 2c at 467 after yesterday gaining Commerce Commission clearance for its plan to buy a 40.5 per cent stake in Christchurch Casino.

Hirequip was up 5c to 109 after announcing it was to buy generator hire business Power Hire Ltd for $11.3 million in cash and shares.

Other stocks on the move today included: AMP up 3c at 638, Auckland International Airport up 14c at 670, Contact up 4c at 560, Lion Nathan down 5c at 710, NGC Holdings up 6c at 261, NZ Refining down 25c at 1890, Repco down 10c at 270, and The Warehouse up 1c at 444.

Overseas, the Dow Jones was up 61.60 points at 9968.51, the Standard & Poor's 500 Index was up 7.39 points at 1091.49, and the Nasdaq Composite Index up 21.18 points at 1897.82.

- NZPA