Thursday 30th July 2009 |
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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 tumbled three-quarters of a U.S. cents after Reserve Bank Governor Alan Bollard kept the official cash rate unchanged as expected at a record low 2.5% and said despite the signs of leveling off in economic activity the economy remains weak. He said the level of the kiwi isn’t helping the sustainability of future growth. The kiwi bought 65.01 US cents from 65.70 before the report. Bollard’s statement comes a day after National Bank’s Business Outlook, showing business confidence jumped to its heist level in seven years this month.
Air New Zealand (AIR): The stock jumped 2.9% to $1.07 yesterday. The company is the cheapest profitable airline in the world in its peer group apart from Air France-KLM, Goldman Sachs JB Were analyst Marcus Curley said in a report, according to the Dominion Post. He predicted its shares would rise to $1.35 in the next 12 months.
Auckland International Airport (AIA): The nation’s busiest gateway yesterday announced that Air New Zealand withdrew its application for a judicial review of the airport’s aeronautical charges. The application was initially lodged in 2007, the airport company said in a statement. Auckland Airport “looks forward to continuing to work with Air New Zealand to build a stronger commercial relationship,” it said. International passenger arrivals fell 5.2% in June, the airport said this week. The shares fell 1.2% to $1.71 yesterday.
Fletcher Building (FBU): The prospect of ongoing low interest rates after the central bank’s statement today may help bolster confidence in the housing market, after building consents tumbled last month. The shares fell 2.8% to $7.07 yesterday.
NZ Farming Systems Uruguay (NZS): The shares rose 4.4% to 47 cents yesterday after the company announced it had sold US$30 million of bonds to investors in the South American country, allowing it to continue with its dairy farm developments. It had to abandon a capital raising late last year as financial markets weakened.
PGG Wrightson (PGW): Fonterra yesterday reiterated its forecast milk payment for the 2009/2010 season at $4.55 per kilogram, soothing fears that payments were set to decline further, eroding farmers’ profits. Still, a survey of Federated Farmers members released this week found a net 45% of respondents expect general economic conditions to decline in the next 12 months, with dairy farmers the most miserable. Shares of the nation’s biggest rural services company fell 3.2% to 92 cents yesterday.
ProvencoCadmus (PVO): The provider of electronic point-of-sale systems slipped 2.4% to 4 cents yesterday adding to its 37% slump the previous day after it said additional funding “is urgently required in order to support working capital need” and the company is in talks with its bank and existing shareholders to gain short-term aid.
Businesswire.co.nz
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