Stocks to Watch: Air NZ complaint, tourism numbers

Wednesday 22nd April 2009

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

Themes of the day: Stocks on Wall Street tumbled after Bank of America increased its reserves for bad loans, driving shares of the biggest US lender down 24%. The Conference Board’s index of US leading economic indicators fell more than expected last month, stoking concern the recession in the US will extend into the second half of 2009. In New Zealand, the government is scheduled to release tourism figures for March.

Air New Zealand (AIR): Qantas and Cathay Pacific have complained about government-owned or backed rivals not having to pay the same kind of returns as commercial airlines, the National Business Review reported. Qantas may call on the Australian government to provide a “level playing field” while Hong Kong-based Cathay today announced large reductions in capacity as it looks to cut costs. Shares in New Zealand’s national carrier were unchanged on $1.06.

Auckland International Airport Ltd. (AIA): Statistics New Zealand releases international travel figures for the month March today. Inbound tourism has weakened as the global economic downturn curbed demand for travel. The stock was unchanged at $1.70 in yesterday’s trading.

Fisher & Paykel Appliances (FPA): The company fell 4.3% to 45 cents yesterday, bringing its decline this year to 65%. The appliance manufacturer’s $80 million short-term loan-facility ends on April 30, increasing the prospects for the company to announce new capital-raising initiatives. It gained a waiver to its debt cover ratio and interest cover ratio covenants for the term of the interim facility, buying more time to negotiate with its banking syndicate to refinance bank debt.

New Zealand Oil & Gas (NZO): Crude oil for May delivery fell 7.6% to US$46.49 a barrel on the New York Mercantile Exchange as pessimism over the state of the US economy grew. Shares in the oil and gas explorer slid 2.1% on the NZX 50 Index yesterday.

Plus SMS (PLS): The company is seeking shareholder approval to raise up to $7.5 million through the sale of convertible notes and a share placement to fund working capital and expansion. The stock last traded on April 17 at 0.5 cent.

Property for Industry (PFI): The industrial property investor posted a 3.3% fall in net profit attributable to shareholders to $4 million and will pay shareholders a first-quarter dividend of $1.55 per share plus imputation credits of 52.6 cents per share. The investor’s net profit rose 7.3% to $3.4 million for the three months ending March 31. The shares rose 0.8% in trading yesterday.

Businesswire.co.nz

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