KEY POINTS:
The New Zealand sharemarket surged more than 2 per cent today after news that one of its larger stocks could be in play.
Auckland Airport shares rose as much as 48c to 330 after the company said Canada Pension Plan Investment Board (CPPIB) had been approaching its shareholders in an attempt to buy shares prior to a possible bid.
The airport company said it understood CPPIB had been unsuccessful but it advised shareholders not to sell their shares.
Auckland Airport shares closed up 38c, or 13 per cent, at 320.
"I think it's likely to stay around these levels. Frankly, if there is any approach made to take the company over, $3.10 is going to be well short and I think anyone looking to do it would have to be looking around the $3.50 mark to take that company over," Hamilton Hindin Greene partner Grant Williamson said.
The benchmark NZSX-50 index closed up 90.72 points at 4303.18, on turnover valued at $101.5 million. Rises outnumbered falls 77 to 42.
"That's a very big day and it's rubbed off on a lot of the other blue chips stocks on the market as well," Mr Williamson said.
"I think a lot of investors are starting to say there's a large amount of money offshore looking for good solid investment and New Zealand is coming under the microscope somewhat."
Fletcher Building rose 15c to 1286, Contact Energy was up 23c at 905, Fisher & Paykel Appliances was up 6c at 375, F&P Healthcare rose 3c to 354, and Sky City -- the perennial subject of takeover speculation -- was up 24c at 514.
As well as an attempted raid on one of its stocks, the market also absorbed unconfirmed reports that the Reserve Bank of New Zealand was intervening in the currency market to push the New Zealand dollar down.
The news vacuum in the lead-up to the June 30 balance date that brokers talked about last week was gone.
Air NZ rose 3c to 310, on top of a 5c rise on Friday.
Market leader Telecom also benefited from the market's mood, up 6c at 468.
Infrastructure investor Infratil was 5c higher at 324, NZX rose 15c to 1160, and Sky TV was up 13c at 570.
Among other in-play stocks, Tourism Holdings rose a cent to 274 and The Warehouse was flat at 598.
- NZPA