Stocks to watch: Abano, ING, NZX, Skellerup

Tuesday 6th October 2009

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

Themes of the day: There is growing speculation the Reserve Bank of Australia will raise its benchmark interest rate as soon as today, after AFR rate-picker and columnist Alan Mitchell flagged it as a probability. In New Zealand, the NZIER releases its Quarterly Survey of Business Opinion today, which may add to evidence companies are growing more bullish. Stocks gained on Wall Street after the US services sector, which makes up nearly 90% of the economy, grew for the first time in 12 months, and Goldman Sachs Group recommended large banks. The kiwi dollar rose above 73 US cents for the first time in 14 months.

Abano Healthcare Group (ABA): The health clinic investor is rated a ‘buy’ by Forsyth Barr analyst John Cairns, according to the ShareChat website. Cairns predicts annual net profit will soar to $77.3 million next year from $9.7 million this year to $77.3 million next year, reflecting the profit on the sale of Bay Audiology. The shares slipped 0.8% to $6.35 yesterday.

ING Property Trust (ING): The trust yesterday announced the sale of 308 Port Hills Road in Christchurch and 15 Maui Street, Hamilton for a combined $8.6 million, in line with their March 31 valuations. The sales bring total disposals so far in the 2010 financial year to 10 properties worth $57.5 million. ING is selling non-core properties to repay debt. The shares rose 1.3% to 79 cents yesterday.

NZ Farming Systems Uruguay (NZS): The shares jumped 7% to 46 cents yesterday, the biggest gain on the index, after ANZ Bank's monthly Commodity Price Index had its strongest upwards bounce in 22 years, with a 6.8% surge in prices for the month of September. The gains were led by a 17% increase in dairy prices.

NZX (NZX): The stock exchange operator today announced it will acquire Melbourne-based CLEAR Group, which includes the Clear Grain Exchange. The initial purchase price is A$6.4 million. The purchase “brings together two key components of NZX’s strategy - trading of agricultural commodities and acquiring technology development expertise to grow markets,” said chief executive Mark Weldon. The stock dropped 19 cents to $8 yesterday.

Skellerup Holdings (SKL): The manufacturer of rubber goods and milking equipment raised its target $21.54 million through a two for five rights issue which closed on October 1, with investors seeking to buy $24 million of shares. The funds will be used to repay bank debt, strengthen the balance sheet and provide funds for growth, said managing director Donald Stewart. The shares rose 2% to 51 cents yesterday.

Businesswire.co.nz

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