KEY POINTS:
The New Zealand sharemarket opened a new week with a burst higher on the back of news that one of its larger stocks could be in play.
Auckland Airport shares rose 48c, or 17.02 per cent, 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 company said it understood CPPIB had been unsuccessful but it advised shareholders not to sell their shares.
The operator of Auckland's Airport also revealed that it had been in talks with CPPIB and others and promised to keep shareholders informed in the future.
The benchmark NZSX-50 index rose 62.462 points, or 1.483 per cent, to 4274.919, adding to the 18.79 point gain on Friday.
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.
Auckland Airport jumped 10c to 284 on Friday after UBS said the airport was a possible target for Macquarie Airports Group once it sold its stake in Rome's two main airports. Australian newspapers speculated this morning that that deal was close and that Macquarie would be cashed up. Macquarie is not commenting on its interest in Auckland's Airport.
Air NZ rose 2c to 309 this morning after rising 5c on Friday.
Market leader Telecom was unchanged at 462.
Infrastructure investor Infratil was up 6c at 325 and Fletcher Building was up 4c at 1275. Contact was up 3c ar 885.
Tourism Holdings was unchanged at 273. The Warehouse was initially untraded.
- NZPA