Stocks to watch: Abano Healthcare, Hallensteins, Infratil

Thursday 15th 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: The Consumer Price Index for the September quarter is announced by Statistics NZ today. Inflation is expected to be close to the Reserve Bank’s target band, with economists median pick of 0.8% for the quarter. If so, the annual inflation figure would be down to 1.2%, the lowest figure for a decade. Stocks rallied on Wall Street, with the Dow Jones Industrial Average rising above 10,000 for the first time in a year as JPMorgan Chase posted earnings that beat estimates, stoking optimism for bank profits.

Abano Healthcare Group (ABA): The health-clinic investor fell 5.1% to $6.50 yesterday, after Hearing Holdings, a company associated with Australian private equity firm Crescent Capital Partners, sold its stake of just under 20%.

Fletcher Building (FBU): The international construction company told an investor meeting that its Formica and Building Products divisions were poised to grow along with the world economy following its rationalization of manufacturing plants. Government incentives in Australia and New Zealand have boosted its insulation sales. Shares closed at $7.92, down 8 cents yesterday.

Hallenstein Glasson Holdings (HLG): The clothing chain, which operates 26 Glasson womenswear stores in Australia, jumped 4.2% to $2.95 yesterday, the biggest gain on the NZX 50, after a survey showed consumer confidence across the Tasman rose to a two-year high. The Westpac Banking Corp. and Melbourne Institute sentiment index rose 1.7% to a two-year high 121.4 points this month.

Infratil (IFT): Drivers working for the investment group’s NZ Bus unit in Auckland agreed to put aside their work-to-rule move and the company rescinded its lock-out, allowing the city’s commuter services to resume after seven days of disruption. The shares rose 1.2% to $1.64 yesterday.

Kiwi Income Property Trust (KIP): The property investor is rated a ‘buy’ by Forsyth Barr analyst Jeremy Simpson, according to the ShareChat website. Simpson said the 3.5% decline in the value of KIP’s property portfolio was better than expected and “highlights the resilience” of commercial property. KIP has “relatively defensive cashflows,” he said. The trust’s units rose 1 cent to $1.10 yesterday.

Pan Pacific Petroleum (PPP): The shares have tumbled in the past two days after the oil company said it missed out on a stake in a Vietnam prospect. In May the company entered into a farmin agreement with Premier Oil Vietnam South for a 15% interest in an offshore block. The deal was subject to waiver of pre-emption rights by PetroVietnam, which has exercised the rights. The shares fell 8.6% to 53 cents yesterday.

Windflow Technologies (WTL): The New Zealand’s windmill manufacturer received a boost with Wellington City Council’s approval for a 25 turbine wind farm at Long Gully, southwest of the city. Shares were unchanged at $1.30 yesterday.

Businesswire.co.nz

Comments from our readers

No comments yet