Stocks to watch: AMP, ARG, NZO, SFF, SKT, THL, VHP

Stocks to watch: AMP, ARG, NZO, SFF, SKT, THL, VHP

Dec. 6 (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: Global markets rallied as investors ignored weaker job numbers in the U.S. and ongoing sovereign debt concerns in Europe. Last week the Standard &Poor's 500 Index rose 3% to 1,224.71 in five days, its largest gain in four weeks, while in Europe the Stoxx 600 rose 1.6% to 270.94 on the week. U.S. data showed unemployment rose to 9.8% last month, as employers added only 39,000 jobs, a sharp decline from the 172,000 created in October. Oil prices rose to a two-year high, with Brent Crude oil up 1.7% to US$91.39 a barrel. The New Zealand dollar climbed to 76.62 U.S. cents from 75.64 cents on Friday in New York, and gained to 68.83 on the trade-weighted index of major trading partners’ currencies from 68.56.

AMP Ltd (AMP): Speculation that the Australian wealth manager will become a bank was squashed after it said it will focus on wealth management rather than banking if its merger with AXA Asia Pacific Holdings is successful. However, the company said it would look to grow its small banking arm, which it says could become a very competitive player once securitisation markets recover. Shares fell 0.2% on Friday to $6.61.

Argosy Property Trust (ARG): The listed property developer formerly known as ING Property Trust bought out Valour Ideal's stake in the Palmerston North venture when Valour wasn't able to fund its share of the development. No money has changed hands with Argosy assuming Valour’s debts and obligations in lieu cash, effective as of Nov. 30. Shares fell 2.7% on Friday to 73 cents.

New Zealand Oil & Gas (NZO): Pike River Coal's board has signaled that it wants to restart operations once safety issues at its coal mine are addressed, according to press reports. Earlier, chief executive Peter Whittal estimated that there was 50 million tonnes of coal still in the mine. Shares in NZOG, the energy and exploration company which owns a 29% stake in the coal miner, were unchanged on Friday at 90 cents.

Silver Fern Farms (SFF): The meat processor with shares on the Unlisted platform says it will probably rebuild the Te Aroha plant damaged by fire on Friday night. Job losses are inevitable. The shares last traded at 70 cents on Dec. 3.

Sky Network Television Ltd. (SKT): The pay television operator said its internet television service, iSky, may only launch in the New Year, as it continues to conduct testing, but denied that there had been a delays. While no official launch date was given when iSky was unveiled, although it was widely expected to be for the end of the year. Shares rose 0.2% on Friday to $5.18.

Tourism Holdings (THL): The camper van rental company last week announced it was expanding into the U.S. marker with the acquisition of JJ Motorcars Inc., the recreational vehicle rental company, for $17 million. The deal, the first big acquisition after several years of selling assets, will add as many as 450 RVs to its fleet. Shares fell 1.3% on Friday to 74 cents.

Vital Healthcare Property Trust (VHP): The trust's acquisition of Essential Healthcare Trust's assets will have a positive impact on occupancy, weighted average lease term, and earnings, according Craigs Investment Partners analyst Chris Byrne, quoted on the ShareChat website. He estimates the transaction will increase earnings per unit by 1% in the year ending June 2011 and by 5.2% the following year. Shares were unchanged on Friday at $1.07.

(BusinessDesk)

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