Stocks to watch: Sky TV subscription outlook dim, Warehouse bonds

Wednesday 10th February 2010

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

Themes of the day: Earnings season kicks off today with Steel & Tube and Tenon expected to announce weak earnings, according to Forsyth Barr analysts. Prime Minister John Key’s speech to Parliament yesterday ruled out more tax changes than it flagged, though GST is tipped to rise to 15% to offset cuts to personal and company rates. Risk appetite offshore was boosted after the European Union sent smoke signals that it plans to bailout Greece from its fiscal woes, pushing stock markets in Europe and the U.S. up.

AMP NZ Office Trust (APT): The trust led a rally in property investors, climbing 2.7% to 76 cents after Prime Minister John Key said tax reforms won’t include a land tax or capital gains tax. Goodman Property Trust (GPT) rose 2% to $1.02, Kiwi Income Property Trust (KIP) rose 2% to $1.04 and Property for Industry (PFI) climbed 1.8% to $1.14.

NZX (NZX): The operator and regulator of the stock exchange expects to launch its first dairy futures market in June, the Otago Daily Times reported. Exchange derivatives manger Katherine Jaggard said the high level of interest, both locally and internationally, was an indication the dairy sector lacked risk management tools. The shares were unchanged at $2.19 yesterday and have shrunk 7.2% this year.

Pike River Coal (PRC): The shares fell 3.3% to a nine-month low of 88 cents yesterday. Investors are awaiting word from the mining company on how it will raise more capital to continue developing its mine to full production after announcing further delays.

Renaissance Corp. (RNS): The Apple products distributor said yesterday that it had breached the terms of its loans on interest cover. It reported a full-year loss of $2.7 million. It took $3.4 million one-time charges. The shares tumbled 8.7% to 21 cents yesterday.

Sky Network Television (SKT): First NZ Capital analyst Sandra Urlich has downgraded her forecast for the pay-TV operator’s subscriber growth to 54,000 from 67,000 over the next two years, according to the ShareChat website. Urlich said the company had used up the novelty factor of its MYSKY service and would be distracted by the decommission and conversion of UHF. The stock is rated an ‘underperform,’ and the shares dropped 1% to $4.75 in trading yesterday.

Tower (TWR): The insurer and fund manager’s trading performance in the three months ended December 31 was ahead of the year-earlier period, chairman Tony Gibbs told shareholders at their annual meeting yesterday. “Results are tracking ahead of the same period last year and the board is pleased with this performance,'' he said. The shares climbed 1.6% to $1.94 yesterday.

Warehouse Group (WHS): The biggest retailer on the NZX 50 plans to raise $100 million selling five-year bonds. It hasn’t yet published the interest rate. The shares traded unchanged at $3.78 yesterday.

Businesswire.co.nz

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