Sky City shares rose early but soon after lost ground following an institutional placement of 71 million shares at the top end of the book-build range.
A halt on the company's shares was removed before the market opened today after the company said it raised $185.3 million at $2.61 per
share. Sky City shares were up 5c early to $2.90 but within about 20 minutes of opening had reversed course, dropping 8c from the opening level to $2.77.
The sharemarket generally made a modest gain, after a solid performance overnight by stocks in the United States where Treasury Secretary Timothy Geithner indicated most banks had sufficient reserves to protect against possible losses.
Around 10.15am the benchmark NZX-50 index was up 8.28 points to 2673.14, after yesterday losing 34 points.
The main early gains today included Fletcher Building up 6c to $6.34, Contact Energy up 6c to $5.70, Sky TV up 5c to $4.10, Freightways up 3c to $2.68, and Infratil up 2c to $1.56.
Leading stock Telecom was unchanged at $2.55, while Fisher & Paykel Healthcare lost 4c to $3.04, and Cavalier Corp lost 3c to $1.72.
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In the US, Treasury Secretary Geithner's comments sparked a rebound in bank shares, while earnings from a handful of blue-chip companies boosted sentiment, led by United Technologies Corp as the industrial bellwether forecast a return to growth next year.
The Dow Jones industrial average rose 1.6 per cent to 7969.56, the Standard & Poor's 500 Index gained 2.1 per cent to 850.08, and the Nasdaq Composite Index was up 2.2 per cent at 1643.85.
- NZPA
