NZ stocks: Wellington holiday subdues market

12.00 pm

The New Zealand sharemarket was quieter than normal for a Monday, with the Wellington Anniversary Day holiday removing many market players.

By mid-morning the benchmark NZSE-40 capital index was up 4.65 points, or 0.22 per cent, at 2104.97 while the top-10 index was up 5.75 points at 957.07.

Leading turnover of 6.12 million stocks, valued at $19.17 million, was Telecom's 1.30 million stocks worth $6.95 million.

Stephen Wright of ASB Securities said the local market was "exceptionally quiet".

"As usual, dominated by Telecom (up 4c at 541). Fisher & Paykel was lower in the US overnight, their share price was up but it was still at a lower value than it had been in New Zealand on Friday. So the fall in F&P (down 5c to 1680) just reflects generally its slightly lower close in the US," Mr Wright said.

Following the success of French company Groupe Danone's takeover bid for Frucor Beverages on Friday, the three-way battle for lingerie maker Bendon was likely to dominate corporate news this week.

On Friday entrepreneur Eric Watson's Pacific Retail Group unveiled a 190 per share takeover bid for 100 per cent of the company. That is below Bendon's 193 close on Friday.

The stock was untraded by 11.30am today.

Already on the table is a $38.5 million management buyout offer from managing director Hugo Venter, in association with AMP Global Investors, for Bendon Group's operating subsidiary. Another bidder, speculated to be Australian magnate Solomon "Solly" Lew, has also offered to buy that business for about the same amount as Mr Venter.

Mr Wright said some Bendon shareholders appeared to be holding out for a higher offer, and Mr Venter may be forced to make a counter-bid.

"There are certainly punters prepared to pay over the 190 and see if there is another bid come through," he said.

Timber products company and forester Carter Holt Harvey rose 3c to 178 ahead of its third quarter result tomorrow, which analysts expected to be much improved on its losses in the last two quarters.

Increased demand across all of its divisions should boost the after tax result to between $9 million and $26 million for the three months ended December 31.

Elsewhere on the market, Frucor Beverages, which is set to be delisted, rose 6c to 234; Auckland Airport rose 1c to 390, Restaurant Brands was up 3c at 205, Sky Network Television was up 2c at 249, Software of Excellence gained 5c to 310, and The Warehouse rose 3c to 670.

Fisher & Paykel Appliances shed 10c to 760, Baycorp Advantage lost 10c to 710, Fletcher Forests lost 1c to 23, Telstra was down 9c at 656, and casino operator Sky City lost 4c to 616.

There were 36 falls and 27 rises on the 109 stocks traded.

On Wall Street on Friday, the Nasdaq Composite Index was down 55.48 points, or 2.79 per cent, at 1930.34; the blue-chip Dow Jones industrial average lost 78.19 points, or 0.79 per cent, to 9771.85; and the broad Standard & Poor's 500 shed 11.3 points, or 0.99 per cent, to 1127.58.

The US markets are on holiday tonight to mark Martin Luther King Junior's birthday.

- NZPA