NZ stocks: Heavy Energy trading pushes stocks up

The sharemarket closed a touch firmer yesterday, with Montana and Fletcher Energy supplying the main momentum.

There was hefty total turnover of $226.8 million but much of that comprised crossings, and actual on-market activity was only moderate.

The NZSE-40 capital index gained 3.90 points at 1993.81 and smaller stocks also gained, the NZSE-SCI capital index rising 27.94 points to 5166.57. Rises outnumbered falls 51 to 42 among the 149 stocks traded.

Trading in Fletcher Energy accounted for $150.5 million. It closed up 5c at $9.13. Many investors who did not want exposure to Capstone in the US or to the new Fletcher company, Rubicon, were exiting, said brokers. Others were looking for arbitrage opportunities with the US dollar.

Montana ended up 25c at $3.80 after Lion Nathan - in an apparent attempt to ward off foreign marauders - allowed the Commerce Commission to publicise its application for clearance to acquire the 72 per cent of Montana it does not own.

The market is looking for Lion to take out minorities, including chairman Peter Masfen's holding, at $4 a share, but one broker, who declined to be identified, doubted Lion would act on its application.

Lion closed steady at $5.75. Fellow brewer DB Group gained 8c to $3.71.

Fletcher Forests fell 1c to 25c, the same price shareholders have to pay for their rights, making the rights virtually worthless. However, the rights, which will convert to higher ranking preference shares, closed at 1.2c, down 0.7c and there were 21.6 million rights traded.

Elsewhere, INL said Telecom head Theresa Gattung had been appointed to its board.

Telecom ended 2c easier at $5.80 after initially firming. INL rose 10c to $3.30 and Sky TV fell 3c to $2.65.

Auckland Airport rose 5c to $2.95 after telling shareholders at its annual meeting on Tuesday that it saw the current year profit up 10 per cent.



Elsewhere, Air NZ domestic A shares fell 3c to 144 and the Bs held steady at 185 after news that it was likely to gain around $66 million in abnormal gains from the sale of its holding in Dutch company Equant.

Contact Energy rose 9c to $2.85 as the rumour about Edison Mission increasing its stake refused to die. Edison confirmed an increase in its 40 per cent ownership of Contact by 0.7 per cent.

AMP lost 65c to $24.60, Fletcher Building gained 5c to $1.94, Commsoft fell 9c to $1.86, 5, North Port fell 12c to $4.00 and Owens gained 4c to 84c. RMG was steady at 32c after Eldercare sold down its stake at 27c.

- NZPA