Stocks to watch: Allied Farmers, Fletcher, NZ Refining, NZ Windfarms

Thursday 17th December 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 National Bank Business Outlook survey is due out today and Westpac economists predict it will show business confidence remains at elevated levels. Allied Farmers stock resumes trading after Hanover Finance investors voted to join the company.

Allied Farmers (NZX: ALF ): Investors in Hanover Finance yesterday voted to accept Allied’s offer of shares in exchange for their financial assets in a transaction that will vastly increase the size of the business and give it a book of problem loans to work through. The shares last traded at a record low 19 cents before being halted for the vote. They’re set to resume today.

Fletcher Building Ltd (NZX: FBU ): Government plans to spend $2.4 billion developing highway links out of Wellington to Levin are "unalloyed good news," the construction company said, according to the Dominion Post. Fletcher is among firms expected to bid for the work. The shares rose 9 cents to $7.74 yesterday. Steel & Tube Holdings (STU) fell 2 cents to $2.75.

Lyttelton Port Co. (NZX: LPC ): A report into a potential merger between the port and rival Port Otago Ltd. may not be made public on the grounds of commercial sensitivity, chairman Rodger Fisher said, according to the Independent. The NZX last week asked Lyttelton for an explanation, according to the report. Directors of Lyttelton will Port will receive the assessment, from Auckland consultancy Antipodes Capital, before Christmas. The shares were unchanged at $2.40 yesterday.

New Zealand Oil & Gas (NZX: NZO ): Crude oil climbed more than 2.7% in New York after figures showed inventories fell by 3.7 million barrels last week, more than twice the forecast decline. Crude for January delivery rose US$1.86 to US$72.55 a barrel. The shares fell 3 cents to $1.63.

New Zealand Refining Co. (NZX: NZR ): New Zealand’s only oil refiner is expecting to post a full-year profit of between $10 million and $20 million this year, down from its early projections. The company realised “very low” margins, though it expects these to pick up in the coming months. The shares climbed 1.3% to $4.05 on the NZX yesterday.

NZ Windfarms Ltd (NZX: NWF ): The windfarm developer that has been in an ongoing dispute with Windflow Technology announced it will borrow up to $6.5 million from shareholder Vector Ltd. at an interest rate of 15% per annum. It also said it plans to raise capital in a rights issue early next year and will release more details about the deal as it progresses. The shares climbed 2.2% to 46 cents in trading yesterday.

Businesswire.co.nz

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