KEY POINTS:
Pockets of corporate activity boosted the sharemarket to a surprisingly positive close, a few days before top stock Telecom reports quarterly profit.
The NZSX-50 index rose 13.19 points, or 0.3 per cent, to 4194.64. It made modest gains on Friday when the Australian sharemarket fell 1 per cent.
However, volume was tiny at $78.9 million. Rises and falls were fairly evenly matched, at 58 to 55.
"Corporate activity would be the only thing that keeps the focus on the market because valuation-wise, it's a real stretch," said David Price of Forsyth Barr.
Telecom was up 4c at 483 as attention turned to its third quarter result on Thursday. Reuters reported that Telecom was expected to report a net profit after tax of $225 million in the third quarter, little changed from $222 million last year.
Comments about how much of the proceeds of the sale of its Yellow Pages Group will be returned to shareholders are eagerly awaited. Investors will also look for news of the new chief executive.
The day's highlight was a surprise $277 million takeover bid for Tourism Holdings from Australian investor MFS Living and Leisure.
The news pushed THL shares up 47c, or nearly 21 per cent, to a seven-year high of 274. That was below the 280-per share cash bid.
"The bid is conditional on 90 per cent -- there's two people above 10 per cent, and there's someone who's not very far away from that as well, so the deal swings on whether they act," Mr Price said.
The principal shareholder is New York-based John Grace, who has a 17-per cent stake.
Elsewhere on the market, Fletcher Building fell 6c to 1140, Contact Energy was down 4c at 911, Fisher & Paykel Healthcare gained 8c to 373, and F&P Appliances lost some of last week's gain to fall 4c to 353.
The Warehouse was up 4c at 696, Infratil rose 7c to 594, and Air New Zealand fell 2c to 283.
Software of Excellence share rose 45c, or 21 per cent, to a nearly five-year high of 260 after the dental technology company said it had received interest from a potential bidder, who it was allowing access to conduct due diligence.
- NZPA