NZ stocks: Contact Energy and Powerco salient points in reasonable trade

6.06pm

Takeover targets Contact Energy and Powerco marked a reasonable day's trade on the New Zealand sharemarket, a broker says.

Contact shares finished up 10c at 600 after yesterday shedding 13c.

Independent valuations placed the energy firm's shares in the 574c to 634c and 569c to 629c bands.

Australian firm Origin Energy, which bought a 51.2 per cent stake in Contact from the US power firm Edison Mission, is offering 557c a share in its takeover bid.

Hamilton Hindin Greene broker Grant Williamson said the Contact takeover offer was not enticing enough for investors.

"That's actually quite good for investors, who will still be able to get exposure to that stock on the market," Mr Williamson said, meaning Origin was unlikely to fully acquire Contact.

In today's session the benchmark NZSX-50 index pushed to a new high, up 16.09 points at 2826.83. The NZSX-All capital index was up 4.37 points at 939.32.

Shares in Telecom were up 1c at 591 with $48.1 million worth being traded.

Market turnover was $128.4 million with 153 stocks traded today, including 61 rises and 45 falls.

Mr Williamson said shares in Powerco, which was subject of a 215c a share bid by Australian firm Prime Infrastructure, also featured today.

Powerco shares closed unchanged at 211.

"I think because foreign investors can get 100 per cent cash we're seeing them arbitraging in the market," Mr Williamson said, noting that Prime was likely to increase its stake beyond its current 53.65 per cent.

After the market closed today the Takeovers Panel said its exemption for Prime to offer offshore investors cash only for their holding had resulted in "unforeseen implications".

A number of investors with Australian addresses had exploited the exemption, meaning more than first thought were eligible for the cash offer.

In a statement to NZX, the panel said "such acquisitions may reduce the cash consideration available to remaining shareholders."

In other market news, Fisher & Paykel Healthcare consolidated through today's session before finishing down 5c at 1520. The shares have gained 220c since August 24.

"Some of it (the gains) relates tot he share split the company's going to have, which will make the shares more liquid on the market and more attractive to retail investors," Mr Williamson said.

Fletcher Building shares hit an all-time high today, up 9c 585, Mr Williamson noting the stock "looks solid."

Vertex was unchanged at 167 after 20 per cent shareholder Gould Holdings sold to Masthead at 205c a share.

Telstra fell 1c to 504, the drop following a 5c dip yesterday when the Australian firm confirmed a A$750m ($810m) off-market share buy-back plan.

Other stocks on the move included: Air NZ down 1c at 179, Austral Pacific up 23c at 376, Auckland International Airport up 12c at 720, Hellaby Holdings up 9c at 595, Mainfreight up 5c at 205, NGC Holdings up 4c at 307, NZ Refining down 39c at 2100, and The Warehouse down 3c at 423.

Overseas, the Dow Jones closed down 58.70 points at 9988.54, the S&P 500 ended down 6.59 points at 1103.52, and the Nasdaq Composite was down 19.60 points at 1859.88.

- NZPA