Stocks to watch: AIA, AIR, CVT, GFF, KMD, PGW
Feb. 8 (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 equities continued to rally, fuelled by merger and acquisition activity in the US with
industrial company Danaher Corp. snapping up medical diagnostics company Beckman Coulter Inc, and oil drilling company
EnsCo Plc. buying rival Pride International Inc. In late afternoon trade the Standard & Poor's 500 Index rose 0.5% to 1317.16, while in Europe the Stoxx 600 closed 1% higher at 288.74, its highest level
since Aug. 2008. New Zealand’s Parliament opens the year today, with Prime Minister John Key expected to use his speech
to outline a tougher stance on government spending.
Auckland International Airport Ltd. (AIA): New Zealand's busiest gateway reported a 6.1% increase in international
traffic in December, mainly driven by an uptick in short haul traffic and a jump in visitors from China. Queenstown
Airport, in which AIA owns a 25% stake, saw international traffic volumes jump by 90%, as Jetstar commenced
international services to Melbourne and the Gold Coast. The shares rose 0.9% yesterday to $2.26.
Air New Zealand Ltd. (AIR): Passengers flying on the national carrier's new black A320 will now be able to make mobile
calls and browse the internet while flying. The service, which is being charged at a premium, costs 80c per outbound
text, $3.50 per minute to make a call, $2.00 per minute to receive a call, and $20 per megabyte of data. The shares rose
2.2% yesterday to $1.40.
Comvita Ltd. (CVT): The medical honey products developer announced that its global licensee, Derma Sciences, had
reported positive results of a phase II clinical trial for its new wound healing drug, DSC127. The drug has been shown
to be three times more likely to result in healing of diabetic foot ulcers than conventional treatments. The stock was
unchanged yesterday at $1.52.
Goodman Fielder Ltd. (GFF): World sugar supplies are expected to come under pressure from the impact of Cyclone Yasi on
Queensland crops, with sugar prices now at a 30-year high, according to Rabobank, quoted in a Bloomberg report. The
region grows a third of Australia's sugar cane. Shares in the GFF, the food ingredient manufacturer, rose 1.2% yesterday
to $1.66.
Kathmandu Holdings (KMD): The outdoor clothing retailer is rated as "hold" according to Aegis Equities Research analyst
James Levien, quoted on the Sharechat website. He said he is cautious about second-half results, as the company has a
history of disappointing shareholders after reporting strong interim results. Earlier this month Kathmandu said
first-half sales will be between 16% to 18% higher than the same period previously. The shares rose 0.9% to $2.07
yesterday.
PGG Wrightson Ltd. (PGW): The rural services firms facing a partial takeover offer from Singapore's Agria Corp. reported
a first-half net loss of $5.9 million even as revenue climbed 11% to $646 million. It retained its full-year forecast
for operating earnings before interest, tax, depreciation and amortisation of $58 million to $61 million. The company
also released an independent report commissioned by directors, which recommended that shareholders accept Agria's 60
cents-a-share offer, giving it a 50.01% stake in the company. The shares fell 4.8% to 59 cents yesterday.
Warehouse Group (WHS): New Zealand's biggest listed retailer has announced that Mark Powell, head of its stationery
division, will succeed Ian Morrice as group chief executive officer later this year. He has been appointed as CEO
designate and the management change will be effected through a transition period over the coming months. The shares rose
0.3% yesterday to $3.65.
(BusinessDesk)