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Sky City Rises At First After Share Placement, Then Reverses

Fuseworks Media
Fuseworks Media

Wellington, April 22 NZPA - Sky City shares rose early but soon after lost ground following an institutional placement of 71 million shares at the top end of the bookbuild range.

A halt on the company's shares was removed before the market opened today after the company said it raised $185.3 million at $2.61 per share. Sky City shares were up 5c early to 290 but within about 20 minutes of opening had reversed course, dropping 8c from the opening level to 277.

The sharemarket generally made a modest gain, after a solid performance overnight by stocks in the United States where Treasury Secretary Timothy Geithner indicated most banks had sufficient reserves to protect against possible losses.

Around 10.15am the benchmark NZSX-50 index was up 8.28 points to 2673.14, after yesterday losing 34 points.

The main early gains today included Fletcher Building up 6c to 634, Contact Energy up 6c to 570, Sky TV up 5c to 410, Freightways up 3c to 268, and Infratil up 2c to 156.

Leading stock Telecom was unchanged at 255, while Fisher & Paykel Healthcare lost 4c to 304, and Cavalier Corp lost 3c to 172.

In the US, Treasury Secretary Geithner's comments sparked a rebound in bank shares, while earnings from a handful of blue-chip companies boosted sentiment, led by United Technologies Corp as the industrial bellwether forecast a return to growth next year.

The Dow Jones industrial average rose 1.6 percent to 7969.56, the Standard & Poor's 500 Index gained 2.1 percent to 850.08, and the Nasdaq Composite Index was up 2.2 percent at 1643.85.

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