KEY POINTS:
The sharemarket surged yesterday driven by good regulatory news for market leader Telecom, a new offer for Auckland International Airport and a beneficial reweighting for a number of local blue chips on the global MSCI index.
The benchmark NZX-50 index broke a five-day losing streak rising 70.15 points, or 1.67 per cent, to close at 4205.58. Together, the market's top 15 stocks gained 2.37 per cent.
The biggest winner was Auckland International Airport which rose 30c, or more than 10 per cent, to $3.21 after Canada Pension Plan Investment Board launched another partial takeover for the company, this time an all cash bid for 40 per cent at $3.6555 a share.
Telecom rose 14c to $4.34 after the Commerce Commission came out with a more favourable final price for local loop unbundling - what rival telcos will pay to use its copper network.
"The Canadians are back and certainly the Telecom outcome was ahead of people's expectations," said Shane Solly of Mint Asset Management.
Solly also pointed out that both stocks, as well as a number of others, were probably benefiting from an adjustment to the MSCI global stock index which fund managers use a benchmark for their own portfolios.
Other beneficiaries included Fletcher Building, which was up 26c to $11.72, and Contact Energy, which rose 21c to $9.20.
"This market's not dead and buried by any means," Solly said.
