KEY POINTS:
The sharemarket reversed earlier losses as investors played a "wait and see" game with Auckland Airport.
The benchmark NZSX-50 index gained 13.05 points or 0.3 per cent to 4323.16 on robust turnover worth $149 million. Falls outnumbered rises 61 to 46 on 155 stocks traded.
Auckland Airport slipped 7c to 325 after a 1 per cent selldown by a substantial shareholder, and as the market waited to see what offers might materialise.
A Canadian pension fund has been approaching shareholders, but the airport's local body major shareholders have indicated they won't sell and analysts are warning the stock is worth a more aggressive offer.
ABN Amro Craigs equities adviser Nigel Scott said shareholders had to weigh the airport's potential future value.
"It's the jewel in the crown of the New Zealand sharemarke t."
The broader market had concentrated on selected stocks and was in a "holding pattern," Mr Scott said.
"The market is up against other factors here, currency... potential corporate action and the balance between equities and the bond market."
Mr Scott said investors were probably also mindful of stocks which might provides homes for reinvestment after corporate action.
Turnover was solid in No 2 stock Fletcher Building, up 2c to 1297 and GPG, up 3c to 204. The dilutory effects of GPG's recent one-for- ten share bonus had pushed the share price down, Mr Scott said.
Blue-chips Contact Energy and Telecom rose 7c to 907 and 7c to 470 respectively , while Sky TV rose 6c to 574 on solid volume.
Also on the rise were Hellaby, up 6c to 366, Kiwi Property Trust up 3c to 164, NZ Windfarms up 7c to 128, Dorchester Pacific up 10c or 5 per cent to 185, Wakefield Health up 10c to 810, and NZ Refining up 12c to 735.
Dual-listed banking stocks also enjoyed a strong day, AMP up 22c to 1151, ANZ up 33c to 3320, and Westpac up 20c to 2895.
On the slide was Rakon, down 7c to 525, South Port, down 10c to 240, Tenon down 10c to 250 and Air NZ, which shed 7c to 305 after touching a five-year high of 313 on Monday.
- NZPA