Stocks to watch: AIA, AIR, FBU, KMD, NZO, OGC

Stocks to watch: AIA, AIR, FBU, KMD, NZO, OGC

July 5 (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 Institute of Economic Research’s quarterly survey of business sentiment, released at 10 a.m. today, is expected to show a pickup in economic activity in the third quarter as the country shrugs off the effects of the Christchurch earthquakes and the global financial crisis. The Reserve Bank of Australia will review its monetary policy today, and is expected to keep rates unchanged at 4.75%. Global equity markets were muted with Wall Street closed for the Independence Day holiday. Europe's Stoxx 600 rose 0.2% to 275.54.

Air New Zealand Ltd. (AIR): The national carrier's chief executive Rob Fyfe increased his shareholding in the airline by 282,292 shares yesterday, having exercised 379,403 options, according to a Fairfax Media report. That was funded through a combination of cash and the sale of 97,111 shares. Air NZ shares were unchanged yesterday at $1.12.

Auckland International Airport Ltd. (AIA): The country's busiest gateway announced it has entered into a long term incentive plan retention agreement with chief executive Simon Moutter. The new plan grants him two million phantom options, effective from Aug. 25, 2010. Phantom options mirror the economic effect of share price appreciation. AIA shares fell 0.9% yesterday to $2.24.

Fletcher Building Ltd. (FBU): The delayed Christchurch rebuild is starting to weigh on the construction firm's stock, according to Rickey Ward, domestic equities manager at Tyndall Investment Management. His comments come after Fletcher chief executive Jonathan Ling last week cautioned that analysts' projections may be overblown as they relied too heavily on the timing of the rebuild. FBU shares fell 0.4% yesterday to $8.57.

Kathmandu Holdings (KMD): The outdoor clothing and equipment retailer is expected to face increasingly tougher market conditions in Australia, one of its key markets, after official figures showed retail spending unexpectedly fell in May. Turnover for the month shrank 0.6% to A$20.61 billion, its biggest drop since October last year. KMD shares were unchanged yesterday at $2.28.

New Zealand Oil & Gas Ltd. (NZO): Global oil prices continued to track upwards in the wake of the Greek bailout payment, easing fears the country’s debt crisis may derail the global recovery. ICE Brent Crude futures recently traded at US$111.45 a barrel, up a low of US$103.60 last week. Shares in NZO, the energy exploration and production company, rose 1.2% yesterday to 84 cents.

OceanaGold Corp. (OGC): Global gold prices inched up, after a slip in the U.S. dollar spurred demand for the hedge metal. Gold recently traded at US$1495.45 an ounce, up from US$1493.29 yesterday. Shares in OGC, which operates the Macraes and Reefton goldfields, was unchanged yesterday at $3.29.

(BusinessDesk)

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