Stocks to watch: New Zealand equity preview

Wednesday 28th January 2009

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

Themes of the day: Fonterra Cooperative Group is expected today to announce a cut to its payout to farmers. US consumer confidence slumped to a record low this month amid accelerating job cuts and plummeting home values, signaling a broader and deeper recession for the world's biggest economy. Stocks on Wall Street rose as companies including American Express posted earnings that declined less than expected.

APN News & Media (APN): Tony O'Reilly's parent company, Independent News & Media, has opted to retain its 39% stake of APN, the owner of the New Zealand Herald and Radio Network because potential buyers were unable to secure funding for their bids. The company's stock has slumped over 50% in the last 12 months and last traded on the NZX on January 13 at $2.68. The shares fell 3.7% to A$2.07 on the ASX yesterday.

Cavotec MSL Holdings (CCC): The engineering firm has announced it will supply radio remote controls to German heavy transport manufacturer Goldhofer for the next three years. It's unchanged on $3.00 and has fallen almost 45% in the last 12 months.

Freightways (FRE): US fund manager Harris Associates reduced its stake in the transport and logistics company to 7.95% from 9.49%, according to a filing to the NZX yesterday. The shares fell 1 cent to $2.77 yesterday.

NZ Farming Systems Uruguay (NZS): NZ Farming Systems, which is developing farms in South America based on New Zealand's intensive farming techniques, will be watching Fonterra Cooperative Group's pay-out to farmers today as an indicator of where global dairy prices are heading. The average price of milk powder tumbled 9.3% on Fonterra's controversial online auction site to US$2,017 per metric ton earlier this month, more than 50% lower than when the auctions began in July last year. Stock in the company has plummeted almost 60% to 60 NZ cents over the last 12 months.

New Zealand Oil & Gas (NZO): Crown Minerals has awarded the oil and gas explorer a new exploration permit to the west and south of the Kupe development in offshore Taranaki for an initial term of five years. NZOG won't release estimates of the potential capture until it has more information. Its stock rose 2% to $1.29 yesterday.

OceanaGold Corp. (OGC): New Zealand's biggest gold miner has appointed Marcus Engelbrecht as its new chief financial officer. Engelbrecht spent nine years in South Africa with Deane & Thresher, Chartered Accountants before spending 20 years with BHP Billiton and its affiliated companies. Most recently, he was a principal and director of Mandate Finance. The company's stock has tumbled over 80% to 56 NZ cents in the last 12 months.

By Jonathan Underhill

Comments from our readers

No comments yet