New Zealand shares rise

11 Oct, 2005

New Zealand share prices closed 0.40 percent higher on Monday with gains led by market bellwether Telecom, dealers said. The benchmark NZSX-50 index rose 13.78 points to 3,414.03 on turnover of 81.8 million dollars (57.3 million US). Of 150 stocks traded, 58 rose and 46 were lower.
Telecom, which generally sets the tone for the broader market, rose two cents to 5.91 dollars.
Troubled carpet maker Feltex gained one cent to 59 cents. Shortly after the market closed, Feltex said it was shutting its yarn plant in Melbourne, Australia. Capital Properties rose one cent to 1.45 dollars after its independent directors recommended that shareholders reject AMP Property's 1.42 dollar a share take-over offer. An independent report put fair value at 1.48-1.73 dollars a share.
AMP Property already owns 15.4 percent of Capital Properties and wants to increase its stake to 50 percent. Hamilton, Hindin, Greene partner Grant Williamson said the market was guessing that AMP would increase its offer.
Sky City Entertainment fell two cents to 4.70 dollars. Last week the company confirmed it was looking at making a play for the Australian hotel and gaming company Taverner Group.
Newly merged rural services company PGG Wrightson lost 10.4 percent or 25 cents to 2.15 dollars on its first day's trade on the stock exchange.

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