Stocks to watch: Air NZ, AMP Office, Hellaby Holdings

Tuesday 14th July 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 rallied on Wall Street and in Europe after analyst Meredith Whitney recommended Goldman Sachs Group as a `buy’ and said lenders are set to advance. The New Zealand dollar climbed above 63 US cents as the gain in stocks stoked investors’ risk appetite.

Air New Zealand (AIR): The airline expects to save more than six million litres of fuel and cut carbon emissions by 16,000 tonnes a year by installing performance-enhancing winglets on its fleet of Boeing 767 aircraft. The 3.4 metre high wing tip devices, developed by Aviation Partners Boeing, make the aircraft’s wing more efficient by reducing drag and increasing lift, the airline said. The shares weakened 2 cents to 86 cents yesterday.

AMP NZ Office Trust (APT): The nation’s largest listed commercial property investor yesterday said the value of its Queen Street development had fallen 18% in the past three months. The value of the nearly-completed building at 21 Queen St. was valued at $71 million, down from the $87 million valuation at March 31. The property investor’s overall portfolio declined by 15% in value in the year ended June 30, the trust said. Its units were unchanged at 71 cents yesterday.

Fisher & Paykel Healthcare (FPH): The New Zealand dollar rose to 63.20 US cents, the highest in a week, which could erode the value of overseas sales for the manufacturer of breathing masks and respirators that gets almost 980% of revenue in US dollars. The shares fell 3 cents to $2.82 yesterday.

Fletcher Building (FBU): The nation’s biggest construction company is part of a consortium that won the bidding for Auckland’s $406 million Victoria Park tunnel project, with work scheduled to begin in November. Beca Engineering, Higgins Contractors and Parsons Brinckerhoff, an Australian consultancy, are the other members of the V-Formation group. Fletcher stock edged up 1 cent to $6.56.

Hellaby Holdings (HBY): The stock was raised to ‘accumulate’ from ‘hold’ by Forsyth Barr analyst John Cairns, according to the ShareChat website. The diversified holding company has made "excellent progress" in reducing debt though trading conditions in its four divisions remain challenging, Cairns said. Hellaby’s operating profit may rise 20% to $30.5 million in 2010 from a forecast $25.4 million in the year ended June 30, he said. The shares fell 9 cents to $1.10.

Businesswire.co.nz

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