The New Zealand sharemarket traded steadily yesterday, helped by interest in takeover targets Frucor and Contact Energy.
Turnover was worth a respectable $84.5 million and the NZSE-40 capital index was up 6.83 points to 1964.83.
Peter Stokes, of brokers JBWere, said the market was assisted by the extra liquidity the bids were
creating.
"At the moment there's a defensive tone about the market, and money, by default, has been going to more cashflow-type companies."
He said one example was Steel & Tube, up 11c to $2.50, after announcing a special 10c dividend and giving an upbeat report at its annual meeting on Wednesday.
Telecom was one of the day's losers, falling 3c to $4.60 as $17.5 million worth of shares were traded.
Fisher & Paykel shares soared on nearly the same turnover, gaining 28c to $14.53 before its half-year result due today.
Interest is high in the company as its healthcare division prepares to list on the US Nasdaq exchange.
"There are those who hold a view that anticipation is often greater than the event and they'll get out while the interest is still high," said Mr Stokes. "Others obviously feel that getting out before the splits is the way to position themselves."
Lion Nathan's shares rose to 10c to $5.35 as the company declared its bid for Australian winemaker Petaluma unconditional.
Other rises included Auckland Airport, up 12c to $3.48, Carter Holt Harvey up 1c to $1.44, Horizon Energy up 39c to $14.15, Nuplex up 5c to $2.85, Ports of Auckland up 5c to $5.50 and Sky TV, up 5c to $3.50.
The two takeover targets were down in price. Frucor shares ended down 2c to $2.42 as the company's independent directors said they were seeking new offers. The price remains above the $2.35 offered by French giant Danone.
Contact fell 3c to $4.12 as investors waited for an independent report on the company's valuation.
Other falls included Wilson & Horton, down 15c to 845, after its sale to Australian sister company APN News & Media.
On Wall St, technology stocks rallied after US growth figures showed the economy shrank less than expected in the third quarter.
The Nasdaq index gained 22.8 points, or 1.37 per cent, to end at 1690.21 and the Dow Jones industrial average fell 46.84 points, to 9075.
- NZPA
