A takeover offer for New Zealand Farming Systems Uruguay (NZRSU) offered some rare positive news for investors in the New Zealand sharemarket, as most stocks succumbed to general weakness in international markets.
The benchmark NZX-50 index fell 21.15 points or 0.7 percent to 2964.60. Across the whole market, there were 22 rises and 57 falls among the 110 stocks traded. Turnover was a thin $40.7 million.
Leading stocks came under selling pressure with Fletcher Building down 9c to $7.53 and Contact Energy down 6c to $5.68, while Telecom fell 1c to $1.88.
"We're really just following the lead of the offshore markets from Friday and also the markets that are open in Australasia today," said Grant Williamson of Hamilton, Hindin, Greene.
"Once again we certainly have not fallen by as much as the majority of markets, so our volatility is not as high as what is happening offshore."
Shares in NZSFU jumped 29 percent or 12c to 53c - just 2c below the offer price launched today by Singapore's Olam International for the 81.55 percent of the company it does not own.
Although the offer is conditional and NZFSU advised shareholders to wait for a target company statement before deciding whether to sell, Mr Williamson said investors were not expecting a competing bid.
PGG Wrightson shares rose 3c to 50c after it said it had entered into a lock-up agreement with Olam for its 11.5 percent stake in NZFSU.
Fisher & Paykel Healthcare dropped 5c to $2.97 - its lowest price since October - while the Appliances stock rose 1c to 54c.
Retailers Kathmandu and The Warehouse each fell 2c - to $1.99 and $3.50 respectively.
NZ Refinery fell 11c to $3.29 as oil prices fell below $US76 a barrel, amid fears the US economy is slipping back into recession.
Other falls among top 50 stocks included Sky City, down 3c to $2.93; Steel and Tube, down 13c to $2.10; Tower, down 2c to $1.80; Auckland Airport, down 3c to $1.91, and Sky TV, down 4c to $4.74.
NZX, which has started buying back some of its own shares, rose 5c to $1.50, and Freightways rose 3c to $2.68.
After falls between 2.5 and 3.1 percent in the major Wall Street indices on Friday, the Australian sharemarket's leading index fell 1.5 percent today and Hong Kong's Hang Seng index was down 1 percent during NZ trading hours.
The Japanese market was closed for a holiday.
