Stocks to Watch: New Zealand Equity Preview
Dec. 9 – The following stocks may be active on the New Zealand exchange after developments since the close of trading
yesterday.
Themes of the day: Stocks on Wall Street rallied on President-elect Barack Obama’s plan to embark on a massive program
of public works to help revive the world’s biggest economy and on progress on a bailout package for automakers. Crude
oil jumped 7% as commodities rallied on Obama’s plan.
Air New Zealand (AIR): Qantas Airways said there are “significant matters” to be resolved before any merger with
British Airways can be achieved. These include an appropriate merger ratio, resolution of issues around BA’s pension
fund and the economic outlook, Chief Executive Officer Alan Joyce said yesterday. Air New Zealand traded unchanged
yesterday at 86 cents and has dropped 55% this year.
Fletcher Building (FBU): Shares of the construction company that owns the U.S. based Formica brand of laminated
building board fell to near a 4-year low NZ$5.38. The company may benefit if Obama’s plan helps restore confidence in
the U.S. economy.
Kiwi Income Property Trust (KIP): The property investor said its redevelopment of The Plaza Shopping Centre in
Palmerston North is on track with stage one due to open in March next year. Stage one of the retail project is now 94%
leased. The NZ$93 million redevelopment and expansion of The Plaza was announced in February. The trust’s units fell
about 1% to NZ$1.03 and have fallen 22% this year.
New Zealand Oil & Gas (NZO): Crude oil for January delivery rose US$2.85 to US$43.66 a barrel in New York. The oil and gas company’s
shares fell 2 cents to NZ$1.22 yesterday and are up about 10% this year.
Restaurant Brands New Zealand Ltd. (RBD): The fast-food chain said sales rose 0.8% in the 12 weeks ended Dec. 1, while
same-store sales increased 1.1%. The stock traded at 59 cents yesterday and is down 36% this year, marginally worse then
the NZX 50 Index’s 34% drop.
Telecom Corp. (TEL): The cost of subsiding uneconomic residential phone lines was NZ$70.7 million in the year ended
June 30, according to the Commerce Commission. The bulk of the cost is met by Telecom with most of the rest coming from
Vodafone and TelstraClear. The final cost estimate compares with an initial draft calculation of $62.8m for 2006/07. The
increase reflects Telecom’s reduced net revenues, the commission said. Telecom shares were unchanged yesterday at
NZ$2.32 and have declined 46% this year.
(Businesswire.co.nz)
ENDS