Traders yesterday watched as Fletcher Energy soared 31c to 746 on speculation that the Fletcher Challenge group will make an announcement about its remaining letter stocks in the next few weeks, Ord Minnett Securities institutional dealer Ian Waddell says.
"That created interest in Fletcher Energy," he said. Energy traded 2.6 million shares worth $19.3 million. However, Building and Forests both fell 1c to 233 and 86 respectively.
There was good interest on the market as a whole, with turnover totalling a very healthy $187.6 million, Mr Waddell said. The NZSE-40 Capital Index closed up 5.62 points at 2131.12 and the NZSE SCI Capital Index of smaller stocks gained 27.95 (0.53 per cent) to 5337.97.
Market giant Telecom accounted for $81.5 million of yesterday's turnover, and closed 3c weaker at 725.
The interest in Telecom had largely been due to reweightings on international markets, including on the Morgan Stanley Capital Index, Mr Waddell said.
Funds from Fletcher Paper, which delisted last week after being bought by Norske Skog, were being reinvested into other stocks, he said.
Among the other top-10 stocks, Lion Nathan, which is seeking to raise its stake in Montana from 19.9 per cent to just below 25 per cent - amid rumours that Australian wine conglomerate Southcorp is likely to bid for the Auckland-based wine company - gained 2c to 492.
This was on turnover of 4.8 million shares worth $23.6 million.
However, Montana fell 4c to 243.
Carter Holt Harvey reported it had expanded first-quarter net profit to $90 million from $13 million in the same three months a year ago. It said operating earnings of $120 million were the best in five years.
However, the stock closed down 3c at 195 on turnover of 3.4 shares worth $6.8 million.
INL rallied 11c to 425 after bidding for second-generation radio frequency, while Auckland Airport was down 8c at 275, Contact came off 2c to 267 and Sky TV weakened 1c to 419.
Elsewhere on the market, Baycorp rallied 40c to 1270, Advantage was up 11c at 275 and Frucor gained 6c to 228.
TransAlta gained 16c to 271 after it was reported Natural Gas Corporation was preparing a $166 million takeover bid for the rest of TransAlta it does not already own. Natural Gas was up 1c to 156.
Tranz Rail, the subject of a ministerial inquiry into its safety practices, softened 16c to 384.
- NZPA
Fletcher Energy soars as sale talk swirls
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