Shares make gains in morning trade

PGG Wrightson, New Zealand's biggest rural services company, led gainers on the NZX 50 Index on the prospects of a windfall gain from the sale of its stake in NZ Farming Systems Uruguay.

The NZX 50 rose 14.24, or 0.5 percent, to 3022.67 as at midday, heading for its third gain in four sessions.

The benchmark index has climbed back from the 12-month low it plumbed at the start of July and is down 8 percent this year.

Wrightson rose 3.9 percent to 54 cents, trimming its slide this year to about 15 percent.

The company would reap $15.5 million from the sale of its 11.5 percent holding in Farming Systems if Singapore's Olam International succeeds with its takeover offer at 55 cents a share.

Farming Systems last traded at the offer price.

Separately, Wrightson Finance said today that it failed to get a quorum at a special meeting of bondholders to vote on extending the term of its October 2010 bonds for 12 months.

It has $100 million of the bonds, which carry a coupon of 8.25 percent, and are currently set to mature on October 8, just inside the Crown guarantee.

Wrightson Finance has been accepted for the extended guarantee.

NZ Windfarms rose 4.6 percent to 23 cents, the highest level in a month and its second daily gain of that order.

The wind-power generator yesterday said electricity sales more-than quadrupled to $4.1 million in the year ended June 30.

That's short of the $4.7 million forecast in the April prospectus for its $31.4 million rights issue.

Pike River Coal rose 1 percent to 98 cents, extending yesterday's 2.1 percent advance after Australia's Centennial Coal reported a 13 percent jump in third-quarter sales.

Centennial has agreed to a A$2 billion takeover by Thailand's Banpu Plc, a deal that has prompted some analysts to rerate the sector.

Sealegs, the manufacturer of amphibious boats, jumped 26 percent to 24 cents ahead of a shareholder vote at its annual meeting on Friday to allow Mauritius-based Avenport Investment to subscribe for 31 million new shares at 20 cents apiece, gaining a 39.9 percent stake.

The company plans to use the funds to build its global brand.

The kiwi dollar held above US73.00 cents ahead of Australian inflation data which is expected to show an accelerating pace in price rises across the Tasman, stoking the prospect of another rate hike by the Reserve Bank of Australia next week.

That comes as New Zealand gears up for central bank Governor Alan Bollard to lift the official cash rate a quarter-point to 3 percent tomorrow, which could see the currency push towards US74.40 cents, according to Imre Speizer, market strategist at Westpac Banking Corp.

The New Zealand dollar recently traded at US73.09 cents from US73.52 cents yesterday.

The Securities Commission has put out a warning to investors to be wary of another low-ball offer for Australia's Stock & Share Trading, this time for debentures in Dorchester Finance.

Last month, Dorchester investors approved a recapitalisation plan that will give debenture holders four types of tradable securities along with 50 percent of their principal back.

Shares in Dorchester Pacific were unchanged at 9.5 cents.

- BusinessDesk