Stocks to watch: NZOG, Auckland Airport, National Property, Port of Tauranga

Friday 2nd 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: US stocks weakened overnight on lower than expected manufacturing growth in September and a jump in claims for unemployment benefits. The International Monetary Fund released new world economic forecasts, saying global recovery was under way, but it would be slower than previously anticipated.

Telecom New Zealand (TEL): Chief executive Paul Reynolds told shareholders at yesterday's annual meeting that the company had weathered the recession in good shape, and was not altering its earnings guidance that adjusted EBITDA in the current year will be on a par with last year's result. Telecom shares closed unchanged at $2.70 last night.

New Zealand Oil and Gas (NZO): NZOG has announced this morning the allotment of 3,919,213 million new shares under its dividend reinvestment plan, at a strike price of $1.59 a share, representing 1.02% of issued capital. NZOG shares last traded yesterday at $1.63, unchanged from the previous day.

Auckland International Airport (AIA): Chairman Tony Frankham said in the company’s annual report that global travel demand conditions are unstable and passenger volume growth remains uncertain. For the 2010 financial, the airport expects net profit excluding one-time items to be in the range of $93 million to $100 million. The shares rose 0.5% to $1.87 yesterday.

National Property Trust (NAP): The trust’s manager said the contract for the $13 million sale of its Goddard’s Centre and Dumbarton building in Tauranga is now unconditional. The sale price represents a 5.98% discount to the property’s March 31 valuation. The shares fell 2% to 49 cents.

Port of Tauranga (POT): Chief executive Mark Cairns said the nation’s biggest port company is “confident of maintaining a full year earnings result similar to last year’s. “Whilst the economy looks to have found a floor and many positivesigns are emerging, there remains significant uncertainty to the outlook and speed/shape of any recovery,” he said in the annual report. He singled out the high kiwi dollar as a drag on the economic outlook.

Seeka Kiwifruit Industries (SEK): The company reached a conditional agreement with the major shareholders of Te Awanui Huka Pak to acquire the fruit packing company for $13.2 million in cash and shares. Seeka will use bank funding for the cash portion of the deal, it said. The acquisition will lift Seeka's processing capacity to 26 million trays. The stock last traded at $2.75 on September 29.

Businesswire.co.nz

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