Stocks to watch: AMP, Infratil, OceanaGold, Windflow
Nov. 11 (BusinessWire) – The following stocks may be active on the New Zealand exchange after developments since the
close of trading yesterday. All prices are in New Zealand dollars unless specified.
Themes of the day: The New Zealand dollar dipped after Reserve Bank Governor Alan Bollard said the kiwi was
unsustainably high and warned that easier credit conditions may threaten a resurgence of the debt-fueled housing boom.
Shares on Wall Street pared their gains from a six-day advance after MBIA Inc., the world’s biggest bond insurer, posted
a loss on credit derivatives, sending its stock down by more than a fifth. Weaker stocks helped lift the U.S. dollar
from a 15-month low.
AMP Ltd. (AMP): The Australian pension plan provider jumped 9.5% to $8.10 yesterday after its rejected offer to acquire
AXA Asia Pacific stoked speculation the insurance sector may see more M activity. “AMP itself might come on the block,” said Paul Richardson, chief investment officer at BT Funds Management.
“There’s quite a sweet window of opportunity for M with relatively low cost of funding, if you can get it.”
Infratil Ltd. (IFT): The investment group dropped 4.4% to $1.53 yesterday after announcing the sale of its 3.87% stake
in Auckland Airport at $87.3 million, or $1.84 apiece, a 4.7% discount on yesterday’s closing price. It originally
bought the 47 million shares in 2007 for $140 million.
OceanaGold Corp. (OGC): The gold miner yesterday increased its estimate of reserves at the Macraes Goldfield by 42%. The
shares rose 8 cents to $1.70 yesterday.
Sky City Entertainment Group (SKC): The shares are rated ‘neutral’ by First NZ Capital analyst Rob Bode, according to
the ShareChat website. The casino and hotel group represent’s good value, given its strong cashflow, limited competition
and stronger balance sheet, he said. The shares were unchanged at $3.37 yesterday.
Taylors Group Ltd. (TAY): Australia’s Spotless Services yesterday said it had succeeded in becoming a ‘dominant owner’
of the laundry services group under its takeover, with acceptances reaching 91.1%. That allows it to compulsorily
acquire the remainder of the stock. Taylors last traded at $2.20.
Tourism Holdings (THL): Grant Webster, chief executive of the campervan rental company, told shareholders at their
annual meeting that the coming year “will still be difficult for this business as we deal with lower demand. The shares
were unchanged at 71 cents yesterday.
Windflow Technology Ltd. (WTL): The suspension of the turbine manufacturer’s shares was lifted yesterday after it filed
its annual report. “The achievements of the previous 12 months have been hard fought and have created shareholder value
that unfortunately seems to have been undermined or eclipsed by the recent upset in relations with our key customer,”
New Zealand Windfarms, said chief executive Geoff Henderson. Windflow stock last traded at $1.20.