Stocks to watch: Telecom stoush, Wrightson outlook

Tuesday 5th May 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 Standard & Poor’s 500 Index topped 900 for the first time in four months after as better-than-expected home sales and construction spending stoked optimism the economic slump is abating, helping U.S. stocks rally. The Reserve Bank of Australia meets today to consider monetary policy and is expected to keep its benchmark interest rate unchanged at 3%. Australia’s key rate is 50 basis points more than New Zealand’s.

Metlifecare (MET): The retirement home operator said Jim McLay resigned as chairman and as a director to take up his appointment as New Zealand’s next Permanent Representative to the United Nations. The company named Charles MacDonald as new chairman. MacDonald is CEO of Retirement Villages Group, the majority shareholder in Metlifecare The shares last traded at $2.09 on April 22.

NZX (NZX): The stock exchange operator today said total trades in April fell 10% from a year earlier to 44,506, while the value of trading fell 21% to $2.038 billion. Still, the average daily trade was $102 million, which while down 17% on a year earlier was still the highest since September last year. NZX shares rose 3 cents to $7.18 yesterday.

PGG Wrightson (PGW): The rural services company has some probable “upside to earnings,” according to Morningstar Research, the ShareChat website reported. There are also some encouraging signs relating to commodity prices, the firm said. “Dairy prices are recovering while sheep and beef prices are well above the levels prevailing a year ago.” Wrightson shares rose 2 cents to $1.40.

Sky City Entertainment (SKC): The Auckland-based may lobby the government to allow it to build a casino in Wellington, the Dominion Post said, citing no sources. That would require an amendment to the Gambling Act, which restricted the number of casinos to just six. The shares fell 1 cent to $2.70 yesterday.

Telecom (TEL): Rival mobile operator Vodafone Group claims Telecom was negligent in the way it configured its XT network, allowing it to create interference for Vodafone’s customers’ calls and text messages. Vodafone is seeking unspecified damages and an injunction that would shutter Telecom’s network, due for launch next week, according to Vodafone’s application. It cited a 147% increase in complaints from customers. The hearing is set for the High Court in Auckland tomorrow. Telecom jumped 11 cents to $2.74 yesterday.

Businesswire.co.nz

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