Stocks to Watch: New Zealand Equity Preview
Feb. 11 – 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 tumbled on disappointment over lack of specifics in Treasury Secretary Timothy
Geithner’s revamped bank rescue package. The slump in stocks revived risk aversion and drove the New Zealand dollar down
almost 2 U.S. cents. New Zealand’s government announced its NZ$500 million plan to fast-track school, state housing and
transport spending.
Fletcher Building Ltd. (FBU): The country’s largest listed construction company yesterday sold its Auckland head
office for NZ$36 million to property developer Carrus Corp., exceeding the asset’s book value. Fletcher Building may
post a 20% decline in first-half earnings tomorrow as it kicks off earnings season. It ended trading unchanged on
NZ$5.52 yesterday.
Kingfish Ltd. (KFL): The exchange traded fund that invests in small cap stocks reported its net asset value fell
18% to 98 N.Z. cents in the final quarter of 2008. Since the start of the year the fund’s stock has fallen 14 cents to
72 cents.
Kirkcaldie & Stains Ltd. (KRK): Wellington’s premier department store announced its half year profits to February 2009 are likely to
be 50% lower than last year and it expects the tough retail environment to continue for the next 18 to 24 months. Among
initiatives planned to cope with the downturn, it will review its trading hours and look to reduce costs. Its stock is
sitting on NZ$2.50, falling just over 20% in the last 12 months.
Metlifecare Ltd. (MET): Managing Director of Fisher Funds Carmel Fisher identified its holding in the retirement home
operator as the main cause for the fall in net asset value of Kingfisher Ltd. The first stage of Metlifecare’s North
Shore development which will see the creation of the country’s largest retirement village has almost been completed.
Shares in the retirement home operator are unchanged on NZ$2.50.
NZX Ltd. (NZX): The regulatory body of New Zealand’s security trading has decided against raising the fees it
charges companies that list with it due to the current economic climate. The NZX came under fire in 2006 when it floated
plans to raise the fees, and said it would revisit the issue in 2009. The regulator’s stock rose 1 N.Z. cent to $5.76
yesterday.
(Businesswire)