Stocks to watch: AMP, CAV, FPA, OGC, PGC, TWR

Stocks to watch: AMP, CAV, FPA, OGC, PGC, TWR

Sept. 16 (BusinessDesk) – The following stocks may be active on the New Zealand exchange after developments since the close of trading. All prices are in New Zealand dollars unless specified.

Themes of the day: Reserve Bank Governor Alan Bollard kept the official cash rate at 3% and said the extent of this cycle of interest rate increases will be moderate than he flagged in June. He cited the earthquake in Canterbury as being unhelpful for the economy. The kiwi dollar dropped to 72.71 U.S. cents after the statement from 73.13 cents immediately before. On Wall Street, the Dow Jones Industrial Average climbed 0.4%.

AMP Ltd. (AMP): Australia’s second biggest wealth manager rose 1.2% to $6.23 yesterday after National Australia Bank Ltd. announced that it was scrapping its bid for Axa Asia Pacific Holdings following objects from the antitrust authority.

Cavalier Corp. (CAV): The carpet maker’s earning are set to benefit significantly from one-off gains associated with Canterbury's earthquake, according to a broker at Craigs Investment Partners, quoted on the ShareChat website. An estimated 100,000 homes were damaged by the September 4 quake and more than 500 will have to be demolished. Shares fell 1.7% yesterday to $2.90.

Fisher & Paykel Appliances Ltd. (FPA): The whiteware maker said it has exclusively licensed technology to Brazilian compressor maker Embraco, a Brazilian company owned by Whirlpool, which has a technology sharing alliance with F&P Appliances. The agreement is for use of a compressor is expected to improve energy efficiency by up to 30%. The shares rose 3.6% to 58 cents yesterday.

OceanaGold Corp. (OGC): The Macraes goldfield operator is expected to benefit from the resurgent gold price, with the “alternative asset” last trading at U.S.$1,268.40 an ounce, just off historic highs. Shares were unchanged at $5.25.

Pyne Gould Corp. (PGC): The boards of Pyne Gould, its Marac unit, CBS Canterbury and Southern Cross Building have formally committed to proceed with the merger and signed a binding merger implementation agreement today, they said in a statement. The merger would take effect on Jan. 1 and the new group would seek a listing on the NZX, they said. Pyne Gould was unchanged yesterday at 41 cents. CBS Canterbury (CBS) last traded on Sept. 10 at $2.75.

Tower Ltd. (TWR): The insurer said yesterday that it had agreed to compete with Vero Insurance New Zealand Ltd. for ANZ National Bank Ltd.’s policyholders after they agreed to end an 18-month dispute. The shares were unchanged yesterday at $1.85.

(BusinessDesk)

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