Stocks to watch: Abano trims forecast; Cynotech outlook

Thursday 23rd 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: The global economy will probably shrink by 1.3% this year, the deepest slump since WWII, according to the IMF. Shares on Wall Street staged a late selloff, with Morgan Stanley sliding after reporting a first-quarter loss. Profitability of New Zealand banks is set to slide this year on increased bad debts, according to KPMG's annual survey. Banks had combined profits of $3.27 billion last year, up 1.7% from a year earlier.

Abano Healthcare Group (ABA): The healthcare services company yesterday lowered its forecast for net profit in the year ending May 31 to between $9.1 million and $9.7 million, from a previous range of $10-11 million. That’s still at least 17% up on a year earlier. The downgrade reflects costs of a marketing campaign with free hearing tests, which won’t bear fruit until next year. The shares were unchanged at $4.45 yesterday and are up 4.7% in the past month.

Auckland International Airport (AIA): Total international passenger numbers through the airport fell 6.1% last month, reflecting an extended downturn in visitors from, North America and Europe, according to company figures yesterday. The airport’s shares climbed 0.6% to $1.70 yesterday.

Cynotech Holdings (CYT) : The company led by Allan Hawkins plans to resume lending activity this year, though Hawkins said he doesn’t expect any “massive” increase in business, given the state of the economy. The shares edged up to 16.5 cents yesterday from 16.4 cents.

Fisher & Paykel Appliances (FPA): The manufacturer is understood to be working on plans to refinance its temporary $80 million loan-facility which comes due on April 30. A sale of shares is in prospect at a discount as the company seeks to strengthen its balance sheet and pay down debt. The shares were unchanged at 44 cents yesterday.

Propertyfinance Group (PFG): The finance company Propertyfinance Securities subsidiary applied for a High Court injunction to restrict its trustee, Covenant Trustee Company Limited from being able to appoint receivers pending a special meeting of stockholders. The company is instead arguing for a revised moratorium, saying receivership “provides no better result for PFSL’s stockholders.” The shares haven’t traded since July 2008, when they were at 10 cents.

Businesswire.co.nz

Comments from our readers

No comments yet