Fernz returns to TeNZ

Fernz Corporation is about to renew its acquaintance with the stock exchange's index fund TeNZ. After being knocked out with the recent listing of Sky TV, both it and Auckland International Airport are set to join the top 10 fund (worth around $165 million) at the beginning of next year. Making way for them are Air New Zealand B shares and Tranz Rail. The latter only just came onto the index when Wilson and Horton was delisted earlier this year.

Both companies have dropped significantly in value. Tranz Rail, which was trading as high at 900c in August last year, is now at 349c and Air New Zealand B shares are at 235c after being up around 460c in September last year. The stock exchange managing director, Bill Foster, said the procedure for the swap was that the transactions had to occur within the last couple of days before the change in the index.

It is estimated that the exchange will have to spend more than $3 million to acquire the required holding in the airport company and nearly $5 million in the fast-growing Fernz chemicals business. Another imminent amendment to all market indices is the removal of financial services group Sover-eign from December 18, following its takeover by ASB Life Assurance.