12.45pm
The New Zealand sharemarket chugged higher this morning with early trade dominated by news that former Fonterra boss Craig Norgate's Rural Portfolio Investments (RPI) was to make a bid for control of rural services company Wrightson.
By 11.30am the benchmark NZSX-50 gross index was 12.81 points or 0.49 per cent higher
at 2606.25, while the NZSX-All capital index was up 4.73 points or 0.54 per cent at 880.60.
Turnover was worth $26.32 million with 61 rises and 10 falls among the 120 stocks traded.
RPI which is fronted by Mr Norgate and is half owned by MCN Rural Investments, the investment vehicle of his immediate family, has proposed a bid of $1.50 per share to raise its 13 per cent stake in Wrightson to 50.1 per cent.
By 11.30am Wrightson shares were 17c higher at 141.
AMRO Craigs Equities retail adviser Bryon Burke said that price was "probably where you'd expect it to be given that the bid for 50 per cent is subject to getting 50 per cent".
"They've signalled that if they don't get that then they don't want any. So if you buy at 141 you may not be able to sell at 150 and where does the price go if they don't get it?
"It seems the market's decided that this is the discount to give from 150 and for the risk of them not getting it."
Elsewhere, Mr Burke said the market appeared to be inspired by "continued positive news" from overseas markets.
"Everyone is thinking that the world economy is starting to look a fraction more positive and the market's reacting and that's flowing through to us".
Across the top 50, market leader Telecom was 5c higher at 579 by 11.30am while among the second tier stocks Carter Holt Harvey was up 3c to 226, Contact Energy was unchanged at 548, Fisher & Paykel Appliances was a cent higher at 429, Fisher & Paykel Healthcare was up 10c at 1220, Fletcher Building was unchanged at 455 and Freightways was up 5c to 231.
Sky City, which yesterday announced a $93.8 million conditional purchase of Aspinall's 40.5 per cent stake in Christchurch Casino, was up a cent to 441.
Mr Burke said Infratil was benefiting from TrustPower's share split.
TrustPower, whose shares split on Friday, was trading at 10c higher at 400, the equivalent of 800 before the split, "which is a huge gain".
Mr Burke said TrustPower was Infratil's largest investment. "Once you confer that rise in TrustPower to their asset backing it's quite a few cents."
Infratil was up 3c to 285.
- NZPA
