NZ stocks: Shares rise on news of AMP raid

12.00pm

The New Zealand sharemarket rose in morning trade today largely on news of a buyup of shares in financial services giant AMP.

By 11.30am the NZSX-50 gross index was up 7 points or 0.33 per cent to 2185.27 while the NZSX-40 capital index was up 7.6 points or 0.36 per cent to 2113.5.

Total turnover was $37.2 million with with $12 million of this in AMP shares.

By 11.30am AMP had risen by 129c to 694 by 11.30am.

Brokers said JB Were and Citicorp were bidding for 174 million shares, or 15 per cent of AMP, at A$5.60 ($6.35) on behalf of National Australia Bank (NAB), owner of the Bank of New Zealand.

NAB launched a A$1 billion ($1.13 billion) share raid on AMP, Australasia's largest fund manager, overnight.

Brokers said there is an expectation the raid is a precursor to a full-takeover of the beleaguered company.

"It's game on," said Forsyth Barr Frater Williams broker Matt Willis, who added that NAB would not be satisfied with a small stake.

Later, NAB said it had acquired 34.4 million AMP shares at A$6 per share, equivalent to a "relevant interest" of 5.4 per cent of the company.

NAB said its holding was strategic and it had no interest in acquiring AMP while the company owned its troubled UK businesses.

ABN Amro Craigs Equities retail adviser Bryon Burke said other than the raid on AMP the market was very quiet.

"In fact there's nothing going across the ticker at the moment", he told NZPA at 10.30am.

"If we look at the leading stocks there's literally only been nine trades in Telecom on-market with volume of only 20,000 shares.

Carter Holt Harvey was in the same situation Mr Burke said with only five trades on market totalling about 12,000 shares.

By 11.30am Telecom was 3c higher at 498 while Carter Holt Harvey was unchanged at 171.

"It seems to be a bit of a wait and see, or a sitting on the hands approach from investors this morning", Mr Burke said.

"Potentially the institutional investors are sidelining other stocks while they decide what they're going to do with the AMP shares when Australia opens.

"That's why we're seeing very quiet trading on the rest of the market."

AMP's move today had some effect on fellow financial services company Tower Group, Mr Burke said. By 11.30am Tower was 7c higher at 124c, "certainly on the back of the AMP result".

"It too is in a possible takeover scenario, its just piggy backing on the interest shown in AMP", he said.

Meanwhile the market's other main focus this morning was on Auckland International Airport which earlier today reported a June year net profit of $83.5 million compared with $71.5 million a year earlier.

The result was in line with forecasts, and Mr Burke said it had come as a surprise to see the company's share price come down in subsequent trade.

By 11.30am Auckland International Airport was 10c lower at 600.

"Unfortunately it's a little bit of a trend occurring in the last few results. We've had Port of Tauranga -- good result, price came down a bit, Sky City again good result and the price has come down.

"It looks as though people have been buying ahead of results and as they meet analysts' forecasts they seem to come up against a bit of profit taking and it pushes prices lower."

Elsewhere this morning, Designer Textiles announced it had lifted its June year net profit 5 per cent to $3.4 million on lower sales of $59.7 million against $62.3 million a year earlier. Design Textile shares fell 4c to 99 by midday.

Stocks to move by 11.30am included: BayCorp Advantage up 17c to 214, BIL International down 2c to 75, Briscoe group down 2c to 177, Contact Energy down 2c to 484, Dorchester Pacific down 4c to 191, Fisher & Paykel Appliances up 5c to 1440, Hellaby Holdings down 3c to 475, Infratil down 3c to 226, Michael Hill up 2c to 412, NZX down 3c to 475, Pacific Retail up 2c to 205, Port of Tauranga down 4c to 432, Sanford down 2c to 493, Sky City down 4c to 877, Sky TV up 3c to 455, Steel & Tube down 3c to 375, Telstra up 10c to 540,

There were 31 rises and 28 falls on 100 stocks traded by 11.30am.

- NZPA