Stocks to watch: New Zealand equity preview

Wednesday 14th 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: The New Zealand dollar has sunk to less than 55 US cents after Standard & Poor's said it may cut the nation's AA+ foreign currency debt rating and a report showed dismal levels of business confidence. The US reported a record budget deficit in the three months that started on October 1 of US$485.2 billion. Crude oil fell for a sixth straight day.

Australia & New Zealand Banking Group (ANZ): The bank may be forced to writedown the value of it's a$2.6 billion of investments in Asian banks amid the slump in global stock markets, according to Australian media reports. Its shares fell 60 cents to $17.40 on the NZX yesterday, when it announced an increase in its stake of Indonesia's PT Panin bank to 38%, at a cost of A$166 million.

Fisher & Paykel Healthcare (FPH): The maker of respirators and ventilators gets some 80% of revenue in US dollars, so it tends to benefits as the kiwi dollar weakens. The currency was recently at 55.04 US cents and earlier traded at 54.62 cents. The shares rose 1.9% to $3.20 yesterday.

New Zealand Farming Systems Uruguay (NZS): The company said a drought in Uruguay may affect production on its farms in the South American country, which this week announced emergency measure to help farmers, including interest-free, deferred payment advances of cattle feed. The company's stock fell 1 cent to a record close of 59 cents yesterday.

New Zealand Oil & Gas (NZO): Crude oil fell amid concern a slump in the US economy will drive down demand for fuel, boosting stockpiles of crude. Crude for February delivery fell 1.2% to US$37.15 a barrel on the New York Mercantile Exchange. Oil has slumped about 60% in the past 12 months.

By Jonathan Underhill

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