NZ share market opens lower but Warehouse shares surge

By NZPA

Friday 22nd December 2006

The New Zealand share market opened lower though the main feature was a 3.32% surge the price of the Warehouse shares on news yesterday that Foodstuffs is seeking clearance to make an offer.

The Warehouse rose 23c to $7.15. Foodstuffs said it was applying for Commerce Commission clearance to take over the company founded by Stephen Tindall.

Foodstuff, a co-operative, has teamed up with private equity player Pacific Equity Partners, local media reported, but it says it has not yet made a decision to formally bid. The benchmark NZX-50 index eased 8.898 points to 4019.787 as leading shares retreated. The market is open only for a half day today.

Among the leaders, Telecom was down 4c at $4.85 and Fletcher Building down 5c at $10.85. Contact was down 8c at $8.20.

Air NZ rose 1c to $1.86 and Fisher & Paykel Healthcare rose 1c to $4.26.

United States stocks dropped on Thursday after reports showing a contraction in regional business activity and a downward revision in GDP data added to worries about slower economic growth.

The Dow Jones industrial average was down 31.41 points, or 0.25%, at 12,432.46. The Standard & Poor's 500 Index was down 5.20 points, or 0.37%, at 1418.33.

The Nasdaq Composite Index was down 10.81 points, or 0.45%, at 2416.80.

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