Stocks to watch: Warehouse, F&P Healthcare, Telecom

Friday 11th September 2009

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

Themes of the day: Warehouse Group boosted the profit margin at its department stores and announced a special dividend with its full-year results, saying it sees a gradual improvement in consumer spending. It didn’t give guidance for 2010. Stocks rose on Wall Street on signs the world’s biggest economy may be on the road to recovery, with fewer than expected jobless claims. The kiwi dollar extended its gains above 70 US cents.

Fisher & Paykel Healthcare (FPH): The respirator and breathing mask manufacturer gets almost 80% of sales in US dollars, and suffers when the kiwi dollar strengthens. The currency broke through 70 US cents this week and recently traded at 70.36 cents. The shares climbed 1.5% to $3.40 yesterday.

Guinness Peat Group (GPG): The investment group has indicated it wants to increase its holding in Tandau, an Australian agri-business firm. Tandau shares closed ysterday at 28 Australian cents. GPG shares were at 80 cents yesterday.

Kiwi Income Property Trust (KIP): The trust has put the PricewaterhouseCoopers Centre in Christchurch, valued at $55.4 million, up for sale. Chris Gudgeon, chief executive of the trust’s manager, said KIP wants to focus on commercial property in Auckland and Wellington and would use the sale proceeds to repay debt. The shares rose 1% to $1.03 yesterday.

Telecom Corp. (TEL): IT and Communications Minister Steven Joyce yesterday announced speed and coverage targets for rural broadband to be rolled out over the next six years at a cost of some $300 million. Analyst Paul Budde says the plan looks as though it has been crafted around a Telecom blueprint, according to an NBR report. Shares in New Zealand’s largest listed company rose 0.7% to $2.72 in trading yesterday.

TrustPower (TPW): The utility controlled by Infratil has abandoned its six year project to build a 48 megawatt windfarm at Myponga, 50 kilometres south of Adelaide. TrustPower sought to cut the number of turbines initially approved from 20 to 16 while increasing tower height to 110 metres from 100 metres. The shares fell 0.4% to $7.48 yesterday.

Warehouse Group (WHS): The biggest retailer on the NZX 50 Index posted earnings before one-time items that beat estimates and will pay a special dividend of 10 cents a share. The shares were unchanged yesterday at $4.04.

Businesswire.co.nz

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