Stocks to watch: FPA's Paykel steps down as chair, Wrightson rights begin trading

Friday 27th November 2009

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

Themes of the day: Investors’ appetite for riskier assets tumbled after state-owned investment company Dubai World put off paying its debt to creditors after the property development market collapsed, and raised fears about the health of the global recovery. Stocks in Europe declined, while markets in the U.S. were closed due to the Thanksgiving holiday, while the kiwi dollar fell to a three-week low against the greenback. Fisher & Paykel Appliances will announce its first-half result a day after Gary Paykel stepped down as chairman of the company, while PGG Wrightson’s rights issue begins trading today.

Fisher & Paykel Appliances Holdings (NZX: FPA ): Gary Paykel has stepped down as chairman of the whiteware manufacturer, though he will remain a director of the company for the time being. Ralph Waters, the former Fletcher Building chief executive, will stand in as chair until the company finds a permanent replacement. The company will announce its first-half result today. The shares climbed 3.1% to 65 cents in trading yesterday.

Glass Earth Gold Ltd (NZX: GEL ): The gold exploration company posted a loss of C$164,000 in the three months ended Sept. 30 compared to C$469,000 a year earlier, as it continued to reduce its administrative costs. The company said as of yesterday it has raised $286,000 of its proposed $500,000 through a private placement. The shares, which trade infrequently, last traded at 77 cents on the NZX.

Guinness Peat Group (NZX: GPG ): Director Tony Gibbs declined to comment on media reports suggesting the investment group was running its eye over Hanover Finance and may make a counter offer to Allied Farmers Ltd.’s all-scrip proposal. GPG rose 2.5% to 83 cents yesterday.

Mowbray Collectables Ltd (NZX: MOW ): The stamp and coin auctioneers yesterday announced an unaudited net profit $41,632 for the six months ended 30 September 2009, down from $69,594 a year earlier. Sales from NZ stamp and coin auctions rose 19%. The results were released after the close of trading and the shares rose 4.2% to 99 cents yesterday.

NZF Group Ltd (NZX: NZF ): The company reported a 57% gain in net profit $1.995 million in the six months to Sept. 30. Sales sank 22% to $16.8 million. Managing director John Callaghan said the result includes a write back of previously impaired loans and a net gain on interest rate swaps. The shares traded infrequently and were last at 25 cents on Nov. 25.

PGG Wrightson Ltd (NZX: PGW ): The rural services company’s $180.7 million rights offer at 45 cents a share begins trading today, and is expected to be well-supported by institutions. The offer will see Chinese seed and agricultural research company Agria take a cornerstone shareholding, pushing Craig Norgate’s Rural Portfolio Investments into the number three spot behind Pyne Gould Corp. The shares rose 4.6% to 68 cents on the NZX yesterday.

Tower Ltd (NZX: TWR ): The shares rose 6.6% to $1.94 yesterday after the company posted a 24% jump in annual profit. "The outlook for Tower is positive," said chairman Tony Gibbs. "There will be opportunities which Tower is now in a position to take advantage of. We are very much looking forward to the next 12 months."

Businesswire.co.nz

Comments from our readers

No comments yet