Stocks to watch: ALF, CCC, DIL, DNZ, MFT, TLS
Aug. 11 (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: On the local data front, markets will be watching for the release of BusinessNZ's Performance of
Manufacturing Index for July, and the ANZ Roy Morgan Consumer Confidence Survey for August. Global markets were in full
retreat mode amid speculation that French banks were overexposed to the Greek sovereign debt. On Wall Street, the
Standard & Poor's 500 Index fell 3.5% to 1,130.09, and Europe's Stoxx 600 dropped 3.8% to 223.50.
Allied Farmers Ltd. (ALF) The rural services company which failed to transform itself into a major lender said it will
probably have to write down its stake in Matarangi Beach Estates Ltd. to zero as the prior lender, HSBC, signaled that
it will take a loss on the loan. ALF shares were unchanged yesterday at 0.8 cents.
Cavotec MSL Holdings (CCC): The global engineering company which owns Christchurch-based MoorMaster said today it would
ask shareholders to swap their stock for units in a Swiss-based holding company next month. The special meeting is
scheduled for Sept. 1 in Christchurch, and will fulfill the global engineering group’s ambition to move to the Nasdaq
OMX Stockholm, a more liquid bourse. CCC shares were unchanged yesterday at $2.66.
Diligent Board Member Services Inc. (DIL): The corporate governance software company rose 5.5% yesterday to $1.16 after
it said second quarter sales nearly doubled and it reported a bottom-line profit of US$822,308 in the six months ended
June 30.
DNZ Property Fund Ltd. (DNZ): DNZ chairman Tim Storey says the New Zealand property market remains at the bottom of its
cycle and opportunities are available for the fund, according to a report on the ShareChat website. He said the fund
will continue to look at strategies to grow the business. DNZ shares rose 1.7% yesterday to $1.22.
Mainfreight Ltd. (MFT): The transport and logistics company has reported a 109% increase in net profit to $14.22 million
in the three months to June 30, on the back of improved operations in New Zealand, Australia, the U.S., and Europe. Only
Asia was behind the previous year's result. In the period, earnings before interest, tax, depreciation, and amortisation
reached a record $32.13 million, up from $15.52 previously. MFT shares rose 2.3% yesterday to $9.62.
Telstra Corp. (TLS): The Australian phone company is tipped to report a double-digit decline in net profit today, as its
year-long bid to capture more customers erodes the bottom line, according to a Fairfax Media report. The telco is
expected to report net profit for the 12 months to June 30 around A$3.13 billion, according to the median of four
analyst estimates gathered by AAP. TLS shares rose 4.4% yesterday to $3.55.
(BusinessDesk)