Stocks to watch: New Zealand equity preview

Monday 15th September 2008

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

Themes of the day: Crude oil for October delivery fell 2.2% to $99 a barrel in New York on Friday. The New Zealand dollar has rebounded from its lows of last week and traded recently at 66.75 US cents. The National Party widened its lead over Labour for the first time in three months, according to a Television New Zealand poll. National's support rose to 53% while Labour's fell to 35%.

Contact Energy (CEN): The biggest utility of the NZX 50 Index today welcomed the granting of resource consents for the company's 220 megawatt Te Mihi geothermal power station at Taupo. The approval comes after the Minister for the Environment called in the company's application for Te Mihi, streamlining the approvals process. The shares rose 2% to NZ$9.01 on Friday.

Fletcher Building (FBU): The biggest building materials firm on the benchmark index said the US market "continues to be challenging" for its Formica division, according to notes for an analyst briefing in the US on Friday. Still, restructuring of North American administration centres will save US$7 million in 2009 and US$3 million in 2010, it said. The stocks rose 4% to NZ$7.65 on Friday and has fallen 34% this year.

Pulse Utilities New Zealand (PLU): The company today said it offered 5.7 million shares at 50 cents apiece in a non-renounceable rights issue. The shares, which trade on the NZAX, have dropped 65% this year and last traded at 60 cents on September 8.

Sky Network Television (SKT): The government has delayed a decision on whether to impose regulations on the pay-TV operator including unbundling its set-top box network, operational separation and controls on broadcasts of sporting events, the Dominion Post reported. The stock traded at NZ$4.58 on Friday and is down 24% this year.

Warehouse Group (WHS): Shares of the retailer rose 2% on Friday amid speculation it may re-open an avenue for Woolworths to bid for the company after saying it suspended the rollout of its hypermarkets. Exiting from groceries may help assuage concern from the antitrust regulator. The stocks traded at NZ$3.28 on Friday and has tumbled 42% this year.

By Jonathan Underhill

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