Stocks to watch: DIL, MCK, NZO, PGC, WHS, WBC

Stocks to watch: DIL, MCK, NZO, PGC, WHS, WBC

Jan. 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: The New Zealand dollar fell overnight as better than expected U.S. employment data helped support demand for equities and the greenback.

The kiwi was last at 76.01 U.S. cents, down from 76.38 cents yesterday.U.S. private employers added 297,000 jobs in December, according to a report by ADP payrolls processor, about three times more than what economists forecast. In late afternoon trade the Standard & Poor's 500 Index rose 0.4% to 1275.84, while in Europe the Stoxx 600 closed 0.1% higher at 280.48.

Bonds of Combined Building Society, the merged entity seeking a banking licence and listing on the NZX later this month, start trading on the NZDX today.

Diligent Board Member Services Inc. (DIL): The software support services company is expanding its operations into the Asia Pacific region with the set up of Diligent APAC Board Services PTE. Ltd., a wholly owned Singapore-based subsidiary. The new entity will be headed by Eslinda Hamzah, who was formerly the senior vice president of CNN Broadcast and commercial sales, marketing & affiliate relations. Shares were unchanged yesterday at 67 cents.

Millennium & Copthorne Hotels NZ Ltd. (MCK): The hotelier reported a resolution to its Chinese property investment difficulties, after a rogue executive sold almost US$50 million of assets without board authorisation last March and April. The final impact of the settlement, which sees some assets returned, some to be sold, and the confirmed acquisition of some assets which the executive bought without authorization, will only be known when all related transactions are completed. Shares were unchanged yesterday at 44 cents.

New Zealand Oil & Gas Ltd. (NZO): The energy exploration and production company, rose 1.2% yesterday to 88 cents, as oil prices continued to track upwards on the back of a rosier global economic growth outlook, with Brent Crude trading at a two-year high of US$95.89 a barrel.

Pyne Gould Corp. (PGC): Combined Building Society, the new $2.2 billion financial services entity formed from by the merger of Pyne Gould's Marac finance unit and two building societies, has been awarded an investment grade rating of BBB minus by rating agency Standard & Poor's. The move, which is a key requirement to obtaining a banking license, comes after government accepted it into the extended retail deposit guarantee for so-called “non-banks”. Shares in the financial services company fell 2.6% yesterday to 37 cents. Parties to the merger confirmed it was complete this morning, and trading in Marac bonds (now CBS bonds) commences on the NZDX today.

Warehouse Group (WHS): New Zealand's biggest listed retailer fell 2.3% yesterday to $3.42 after it revised its interim earnings downwards on softer Christmas sales. The company expects to post a first-half profit of between $51 million and $54 million, down from the $57 million reported for the same period last year. Total sales for the two months to Jan. 2 fell 2.7% compared to the same period last year, while same store sales fell 3.8%.

Westpac Banking Corp. (WBC): The Australian lender fell 2.3% yesterday to $29.00 on the NZX, and closed 0.5% lower at A$22.08 on the ASX. Peter Sigley, an institutional broker for Goldman Sachs & Partners, said the ongoing flooding and its impact on the broader Australian economy was likely to weigh on dual-listed stocks in the near term.

(BusinessDesk) 09:40:51

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