Stocks to watch: New Zealand equity preview

Wednesday 3rd September 2008

The following stocks may be active on the New Zealand exchange after developments since the close of trading yesterday.

Themes of the day: The New Zealand dollar extended its slide, reaching to almost 68 US cents and was recently at 68.66 cents. Crude-oil futures for October fell 5% to US$109.71 a barrel and earlier reached a five-month low $105.46 after Hurricane Gustav caused little disruption to rigs and refineries in the Gulf of Mexico. The Reserve Bank of Australia cut its benchmark interest rate a quarter point to 7%, which may help soften the impact of a slowdown in New Zealand's biggest export market.

Austral Pacific Energy (APX): The owner of 69.5% of the Cheal oil field onshore in the Taranaki region said it began production from its Cheal A7 well. Austral's shares fell 9.1% to 40 cents yesterday and have declined about 70% this year.

Fisher & Paykel Appliances Holdings (FPA), Fisher & Paykel Healthcare (FPH): The New Zealand dollar traded at almost 68 US cents and has declined from more than 80 US cents earlier this year. A weaker currency helps boost the New Zealand dollar value of exporters' overseas sales made in US dollars. F&P Appliances rose three cents to NZ$1.80 yesterday and has slumped almost 50% this year. F&P Healthcare rose four cents to NZ$3.20 and is down 10% this year.

Michael Hill International (MHI): The jewelry chain today said it completed the purchase of 17 stores in the US states of Illinois and Missouri from Whitehall Jeweler. The purchase price is about US$5.5 million. The shares fell one cent to 83 cents yesterday, to be down 30% this year.

Millennium & Copthorne Hotels New Zealand (MCK): The hotel manager didn't get enough support from Metropolis apartment owners to manage their units, the New Zealand Herald reported. Millennium stopped running the tower as a hotel on Sunday. It had a three-month management contract to oversee letting 100 units. The shares were unchanged at 56 cents yesterday and fell 21% this year.

New Zealand Oil & Gas (NZO): Crude-oil futures for October fell 5% to US$109.71 a barrel in New York yesterday. The price earlier fell to a five-month low US$105.46.

OceanaGold Corp. (OGC): Gold had the biggest drop in three weeks as falling fuel costs and a stronger US dollar reduced demand for the metal as an inflation hedge.
Gold futures for December delivery fell 3% to $810.50 an ounce on the New York Mercantile Exchange.

By Jonathan Underhill

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