NZ stocks: Shares tentatively follow overseas markets higher

12.30am

Buoyed by positive sessions on overseas markets yesterday, the New Zealand sharemarket made modest gains in morning trade today despite a fall by top stock Telecom.

By 11.45am the benchmark NZSX-50 gross index was up 3.06 points or 0.13 per cent higher at 2571.45, while the NZSX all capital index was 0.53 points or 0.06 per cent higher at 872.32.

Amro Craigs Equities' Bryon Burke said: "The positive tone seen from overseas has spilled over to our market this morning and we've recovered some of our lost ground from yesterday."

He said turnover at $39.83 million by 11.30am was fairly light. There were 41 rises and 27 falls among the 121 stocks traded.

The New Zealand market's move higher was constrained somewhat by market leader Telecom which was 3c lower at 557 by 11.30am.

But Contact Energy was up 3c at 577, Fisher & Paykel Appliances was up 4c to 452, Fisher & Paykel Healthcare was up 4c to 1238, Fletcher Building was up 2c to 428, and Sky TV was up 4c to 523.

Meanwhile, Eric Watson-controlled Pacific Retail Group (PRG) said this morning it planned to float off its Noel Leeming, Bond & Bond, Noel Leeming Furniture and Big Byte retail brands in an Initial Public Offering (IPO).

Proceeds from the IPO, scheduled for late June would fund future investments, meet working capital requirements of PRG's UK unit, PowerHouse, and reduce debt the company said.

The company's shares were unchanged at 200 by 11.30am.

Meanwhile, wood processor Tenon this morning advised shareholders not to accept Rubicon's $1.85 a share partial takeover offer.

Rubicon is seeking to increase its 20 per cent cornerstone stake to 50.01 per cent.

Tenon's independent directors said the offer price was below the company's current share market valuation, and was well below independent adviser Grant Samuel's valuation range of $2.01 to $2.22. Mr Burke said the announcement would have come as no surprise to the market.

Tenon shares were trading 2c lower at 187 by 11.30am. Rubicon shares were unchanged at 85.

Other stocks to move this morning included: Cavalier Corp down 3c to 467, Guinness Peat Group up 2c to 220, Independent Newspapers up a cent to 480, Michael Hill down 5c to 585, NGC Holdings up 6c to 250, NZ Refining up 30c to 1900, Repco up 8c to 293, Telstra up 2c to 536, Tower up 3c to 158, and Waste Management up 6c to 448.

- NZPA