Stocks to watch: KMD, LME, NPX, NZO, NZX, POT

Stocks to watch: KMD, LME, NPX, NZO, NZX, POT

Oct. 27 (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:

Shares on Wall Street were mixed as disappointing third-quarter corporate results from U.S. Steep Corp. offset improved consumer confidence. In late afternoon trade the Standard & Poor’s 500 Index was flat at 1,185.64. In Europe, the Stoxx 600 fell 0.2% to 266.92 at the close. Australia is set to release third quarter consumer inflation data today, which is seen as a key factor that will influence the Reserve Bank of Australia’s rate announcement in November. The New Zealand dollar fell amid heightened uncertainty over the size of the Federal Reserve’s second round of asset purchases next week, and was last trading at 74.83 U.S. cents from 75.18 cents yesterday.

Kathmandu Holdings (KMD): The dual-listed outdoor equipment retailer rose 3.3% yesterday to $1.90, leading gainers on the NZX as the kiwi dollar weakened against its Australian counterpart, creating an arbitrage opportunity between its shares on the ASX and NZX.

L&M Energy Ltd. (LME): The coal seam gas explorer has increased gas reserves at its western Southland basin permit 60% to 274 petajoules, following an independent resource reserve review. Shares rose 7.1% yesterday to 13.5 cents.

New Zealand Oil & Gas Ltd. (NZO): Crude oil rose above US$82 a barrel mark overnight, boosted by improved U.S. consumer confidence numbers. U.S. crude for December rose 20 cents at US$82.72 a barrel by 12.02pm EDT, extending gains from two previous sessions. Shares in the energy exploration and production company rose 1.5% yesterday to $1.29.

Nuplex Industries Ltd. (NLX): The stalled economic recovery in Europe, Australasia and the U.S. is expected to weigh on the industrial resin and chemical maker, said Aegis Equities Research analyst Nachiket Moghe, quoted on the ShareChat website. High demand from China and the Asia Pacific region is likely to be offset by high exchange rates in Europe and Australasia and a rising oil price, he said. Shares fell 0.3% yesterday to $3.37.

NZX Ltd. (NZX): Shares in the securities market operator rose 2.6% yesterday to $1.59, a day after Australian rival ASX soared 19% on the back of a takeover offer at a steep premium from the Singapore stock exchange. “ASX has been valued on very high multiples and that’s rubbed off for some investors in NZX,” said Grant Williamson, a broker at Hamilton Hindin Greene.

Ports of Tauranga Ltd. (POT): New Zealand’s busiest port said it is well-positioned to accommodate bigger container ships expected to visit the country in the near future. The company has already filed its plans for dredging to deepen its harbour, and capacity at the Sulphur Pt cold storage facility was being increased by 70%. Shares were unchanged yesterday at $7.25.

(BusinessDesk)

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