Stocks to watch: New Zealand equity preview

Friday 30th 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 slipped as low as 51.41 US cents, the lowest since December 2002, after the central bank's rate cut yesterday and more evidence of a weakening global economy. Stocks on Wall Street fell after a slew of economic figures dashed prospects for an early revival in the world's biggest economy.

Shares fell on Wall Street after Ford Motor Co posted a record fourth-quarter loss and figures showed a record 4.8 million Americans are on unemployment benefits. In December, US durable goods orders dropped and sales of new homes fell to a record low annual pace of 331,000.

Fisher & Paykel Healthcare (FPH): The maker of breathing masks and respirators gets 80% of its revenue in US dollars and stands to benefit from the kiwi dollar's slide to a six-year low this week. The shares rose 1 cent to $3.33 yesterday.

Fletcher Building (FBU): The owner of the US-based Formica laminates business may weaken after Commerce Department figures showed sales of new homes tumbled more than expected last month. New Zealand building consent figures are out today. Fletcher stock rose 0.7% to $5.52 yesterday.

Kirkcaldie & Stains (KRK): The summer sale at Wellington's upscale department store is attracting more customers than last year as bargain-hunters search for heavily discounted luxury items. Managing director John Milford said the sale generally does better in an economic downturn as consumers find genuine bargains. The retailer's stock held steady at $2.40, having fallen 26% over the last 12 months.

NZX (NZX): Shares of the stock exchange manager yesterday surged 13% to $5.45, leading the NZX 50 higher, after announcing it was in advanced talk to sell its registry business TZ1 Registry to Markit, a global financial information services company headquartered in the UK. The acquisition is expected to complete in the first quarter of 2009, it said.

Sanford (SAN): The biggest fishing company on the NZX 50 told shareholders this week that trading results should improve this year, reflecting lower fuel costs and a weaker kiwi dollar. Shares of Sanford last traded on Jan. 29 at $5.40 and have climbed almost 40% in the past 12 months, the best performance on the benchmark index.

Telecom Corp. (TEL): New Zealand's biggest telecommunications provider is reviewing the success of its call-centre trial in the Philippines and may look to outsource more of its services. With more than 1000 call-centre staff in New Zealand and another 450 in Manila, chief executive Paul Reynolds said in April that shifting call-centres overseas would be part of the company's moves to cut 20 to 25% in operational spending. Yesterday, its stock rose 1% to $2.63.

By Jonathan Underhill

Comments from our readers

No comments yet