Stocks to watch: F&P Appliances gains; Nuplex shareholdings

Friday 27th March 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 on Wall Street gained on speculation the world's biggest economy has hit its trough and a revival in growth may be closer. The US economy contracted by 6.3% in the fourth quarter, the biggest slump since 1982, while unemployment benefit rolls rose to a record 5.56 million earlier this month and 652,000 more Americans made jobless claims last week.

In New Zealand, figures today are expected to show the economy shrank 1% in the fourth quarter, worse than the central bank has predicted. The five-year swap rate surged as much as one percentage point, reaching as high as 5.3% yesterday and was last at 5.05%.

Fisher & Paykel Appliances (FPA): The appliance manufacturer rose 19% to 51 cents yesterday, leading the index higher, as some investors deemed the prospects of a capital raising a safer course after Nuplex Industries completed terms of a share issue.

Hallenstein Glasson Holdings (HLG): The clothing chain today posted a 41% drop in first-half profit to $5.48 million, amid a slide in consumer demand, which squeezed margins.

PGG Wrightson (PGW): Rural Portfolio Investments, the investment vehicle of Baird McConnon and Craig Norgate, sold 2.3 million shares, raising $2.76 million. The transaction reduced RPI's holding of Wrightson to 28.9% from about 30%. The shares fell 0.8% to $1.20 yesterday.

Pike River Coal (PRC): the shares rose 7.5% to 86 cents as some investors positioned themselves ahead of the miner's rights offer. The issue, to raise $41 million for working capital and repairs to a ventilation shaft, includes a free option with each share. The record date is March 30.

Telecom (TEL): The biggest company on the NZX 50 Index may gain after Wall Street allied. The shares are among favourites of global funds making country-by-country allocations. The shares were last at $2.30.

By Jonathan Underhill

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