Stocks to Watch: New Zealand Equity Preview
Dec. 10 – The following stocks may be active on the New Zealand exchange after developments since the close of trading
yesterday.
Themes of the day: U.S. stocks fell after companies including FedEx Corp. forecast weaker than expected earnings,
stoking concern about a prolonged recession in the world’s biggest economy. Crude oil for January delivery fell 1.7% to
US$42.96 a barrel on the New York Mercantile Exchange.
Air New Zealand (AIR): The airline’s acquisition of a stake in Australian online booking system V3 may increase the
amount of tourist packages to New Zealand and demand for airline flights. The stock was unchanged at 85 cents yesterday
and has declined 55% this year.
Investment Research Group (IRG): The investment adviser posted a first-half loss of NZ$97,000, an improvement from the
year-earlier loss of NZ$3.5 million. Sales rose 26% to NZ$1.6 million. Operating profit was NZ$305,000. The results
included a write-down of its shares in Dorchester Pacific by NZ$386,000. The shares trade infrequently and were
unchanged at 9 cents yesterday.
New Zealand Oil & Gas (NZO): The U.S. Energy Department said global oil consumption may decline 0.5% to 85.3 million barrels a day next
year. Crude oil for January delivery fell 1.7% to US$42.96 a barrel on the New York Mercantile Exchange. The stock rose
5 cents to NZ$1.27 yesterday and is up 10% this year.
Restaurant Brands New Zealand (RBD): the local franchise holder for KFC, Pizza Hut and Starbucks coffee outlets rose
3.4% to 61 cents yesterday after the company posted a 0.8% gain in third-quarter sales. KFC drove sales growth, with
revenue from the chicken outlets gaining NZ$2.3 million to NZ$47.9 million.
Warehouse Group Ltd. (WHS): The biggest retailer on the NZX 50 Index said it will close down its liquor sales in six of
its 85 red shed stores after the Liquor Licensing Authority declined a licence for its Albany store and after the
retailer decided to halt its Warehouse Extra grocery offering. Chief executive Ian Morrice said liquor retailing
incurred higher costs because of the need for increased monitoring. Costs to exit liquor would be about NZ$1 million and
start after Christmas. The shares rose 4 cents to NZ$3.28 yesterday and are down 43% this year.
Westpac Banking Corp. (WBC): Westpac has successfully completed a A$2.5 billion share placement and has resumed trading
on the NZX. The share placement aims to improve the bank's potential for growth and bolster its balance sheet following
its merger with St George Bank in Australia. The bank's stock last traded at NZ$21.60 on the NZX, having fallen just
over 35% in the last 12 months.
(Businesswire)
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