Stocks to watch: F&P Appliances, Infratil, RBD, Ryman

Wednesday 2nd 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: Stocks rose in the US as concerns about a potential default by Dubai World abated and figures showed an expansion in American manufacturing. The Reserve Bank of Australia yesterday raised its benchmark interest rate for a third straight month to 3.75%, widening the gap with New Zealand’s 2.5% rate.

Fisher & Paykel Appliances (FPA): The whiteware manufacturer is under pressure to make further changes to its board and management after posting a first-half loss, the NZ Herald said. Chairman Gary Paykel stepped down last week, to be replaced in the interim by Ralph Waters while the company searches for a replacement for CEO John Bongard, who left due to ill health. The shares rose 2 cents to 60 cents yesterday.

Infratil (IFT): The shares climbed 1.2% to $1.65 yesterday, its second daily advance after the biggest shareholder in Australian alternative energy group Energy Developments pledged support for a A$431 million takeover bid from a group affiliated to private equity firm Pacific Equity Partners.

OceanaGold Corp. (OGC): Gold rose to a new record above US$1,200 an ounce, propelled by a weakening greenback, which spurred demand for the precious metal as an alternative investment. The owner of the Macraes gold project jumped 23 cents to $2.35 yesterday.

Restaurant Brands (RBD): The fast-food chain “is definitely turning itself around, and that’s primarily on the back of their KFC chain” said Craig Brown who helps manage $3.3 billion at ING New Zealand. Last week the operator of KFC, Pizza Hut and Starbucks coffee outlets bumped up its full-year profit guidance by 50% to $17.5 million, citing better trading conditions. The shares climbed 11% to $1.62 yesterday.

Ryman Healthcare (RYM): Research firm Morningstar lifted its 2010 underlying net profit forecast to $58 million from $56 million and said Ryman “commands a strong position” in New Zealand’s retirement village sector. The shares rose 3.5% to $2.06 yesterday.

Businesswire.co.nz

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