Friday 25th June 2010 |
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Air New Zealand is reported be announcing changes to its fare structure which will no doubt attract attention. Also the market is waiting for details of L & M Energy's capital raising. Until that comes through the stock remains in a trading halt. Offshore the main interest is in Australia and resource stocks now the country has a new Prime Minister.
Themes of the day: Stocks on Wall Street declined today after big ticket manufacturing inventories weren’t restocked as fast as expected, while Europe’s sovereign debt crisis threatens to rear its head as Greek five-year credit default spreads widened to a record high.
New Australian Prime Minister Julia Gillard promised an early election, where she will seek a mandate to push through climate change policy while opening the door to negotiate with the mining sector over its proposed super-profits tax.
New Zealand’s exports probably grew to $4.23 billion last month, according to a Reuters survey, from $3.97 billion a month earlier. Traders will be keeping an eye on the G20 meeting in Toronto this weekend, where world leaders are expected to discuss how to make the global economic recovery sustainable.
Air New Zealand (NZX: AIR ): The airline is planning to offer business customers deep discounts on regional fares provided they commit to paying an annual fee, a move that would help squeeze out rival carriers, the Dominion Post reports. Tourists would be offered as many as 50,000 seats a year from as little as $1 each by the dominant airline on domestic routes. The stock was unchanged at $1.14 yesterday.
Fletcher Building (NZX: FBU ): The nation’s biggest construction company announced yesterday that it will incur a one-off tax expense of $30 million following changes to New Zealand’s tax law which eliminate depreciation on buildings for tax purposes. The shares fell 1.8% to $7.97 yesterday.
L&M Energy (NZX: LME ): Shares of the coal seam gas and natural-gas development company were halted from trading yesterday pending a statement on a capital raising plan. The stock last traded at 15 cents, giving the company a market value of $27 million, and has fallen 12% in the past three months.
National Property Trust (NZX: NAP ): The manager of National Property Trust, owned by St Laurence, has agreed to sell its management rights for $2.5 million and sell its holding back to the trust, yielding to pressure from an investor group led by the Cushing family. The shares gained 3.9% to 54 cents yesterday.
SmartPay (NZX: SPY ): The EFTPOS company raised $870,000 in a share purchase plan at a 15% discount to strengthen its balance sheet, it said yesterday. SmartPay sold shares at about 3.3 cents apiece, the same price set when it raised $400,000 in a private placement in April. The shares rose 3.2% to 3.2 cents yesterday.
Businesswire.co.nz
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