NZ sharemarket rises to three-year high
A 3.1% rise in Telecom helped propel the New Zealand sharemarket higher on a day other markets posted gains.
There was also a corporate play to provide interest with DNZ Property Fund revealing it has approached Argosy Property Trust with a "merger" plan under which DNZ Property will manage the combined assets.
The benchmark NZX-50 index closed up 30.126 points, or 0.9% at 3558.871, which is its highest level since the middle of 2008.
Telecom rose 7c to 231 and brokers said the more than 16 million shares traded was good volume for the stock.
"Telecom has had a good day," said Ross Cuthbert at Craigs Investment Partners. "There is possibly a bit more certainty for investors after their announcement last week that capital expenditure will be lower."
Argosy Property closed up 2c at 82 and traded as high as 83 after saying the approach from DNZ Property was oral and it would consider any written information that was provided.
DNZ Property is intending pay shares to Argosy unitholders and remain as a listed property investor managing both portfolios. DNZ Property rose a cent to 135.
"Maybe DNZ sees an opportunity there with the cost of the internalisation of Argosy's management contract raising a few eyebrows," Mr Cuthbert said. "So far Argosy is rebuffing them."
Fletcher Building rose 7c to 905 and Contact Energy rose 4c to 604. SkyCity rose 4c to 375 and Sanford rose 7c to 560.
Pharmacybrands rose 3c to 53 after saying it was buying medical centre assets from Radius Health Group.
Ryman Healthcare gained 2c to 261, Ebos eased 2c to 733 and Abano Healthcare rose 5c to 455.
Cavalier Carpets fell 5c to 350 and Pumpkin Patch fell a cent to 120. Steel & Tube eased 3c to 265.
NZPA
Wed, 11 May 2011
Wed, 11 May 2011
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NZ sharemarket rises to three-year high
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