Stocks to watch: Auckland International Airport, Rakon, OceanaGold

Tuesday 9th November 2010

Auckland International Airport could face slowing volumes over the next quarter, OceanaGold shares rise as the gold price climbs and Rakon announces the creation of the world's smallest oven-controlled crystal oscillator.

Auckland International Airport (AIA): The national carrier’s passenger volumes could slow over the next quarter, according to First NZ Capital analyst, quoted on the ShareChat website. Short-term demand is expected to flatten out with the withdrawal of Pacific Blue and trans-Tasman growth is also showing signs of easing. Still, Bodes said this should be temporary as demand picks up with the Rugby World Cup. Shares fell 0.5% yesterday to $2.15.

OceanaGold (OGC): The price of gold climbed above US$1,400 an ounce as investors bought the precious metal as an alternative investment to currencies. Gold for immediate delivery rose to as high as US$1,410.60 in New York. The metal has soared 28% this year. The shares rose 9 cents to $4.73 yesterday.

PGG Wrightson (PGG): Any speculation about breaking up the rural services company into separate businesses is premature, according to analysts surveyed on the Stuff website. This follows an announcement in June, when the company said it would realign its business structure into two core divisions with the AgriServices division having a New Zealand focus and containing its traditional businesses. AgriServices includes rural supplies, Fruitfed, livestock, irrigation and pumping, finance, real estate and insurance. Shares fell 1.9% to 53 cents.

Rakon (RAK): The Mt Wellington-based company said it has created the world’s smallest oven-controlled crystal oscillator, called Mercury. It is 75% smaller than its closest rival, which translated into significant energy savings for telcos when used in certain types of telecommunications infrastructure such as cellular base stations. Shares rose 0.8% to $1.28 yesterday.

SkyCity (SKC): The casino and hotel operator has set aside between $100 million and $110 million to acquire the half of Christchurch Casino it doesn't already own, according to Fairfax Media. SkyCity has made offers in the past to buy the outstanding share from Skyline Enterprises, but has to date been turned down. Shares rose 0.3% yesterday to $3.22.

Satara Cooperative (SAT): The kiwifruit grower has lifted its trading halt after it suspended its shares yesterday ahead of an announcement by MAF Biosecurity that it had quarantined an orchard suspected of having kiwifruit canker. Satara said that while it isn’t connected to the affected property, the company chose to halt trading in their shares because of the potential impact the disease could have. Shares resumed trading at $1.

Seeka Kiwifruit (SEK) will also resume trading having last changed hands at $3.10 on November 2.

Telecom (TEL): The level of participation of New Zealand’s biggest telephone company in the ultrafast broadband rollout is under the spotlight, according to a report on the Stuff website. Analysts expect Crown Fibre Holdings will recommend electricity lines companies build the network. Crown Fibre was set up by the Government last year to manage its $1.35 billion investment in the broadband network, which is intended to see homes and businesses in 33 cities and towns connected with fibre-optic cable by 2019. Shares were unchanged yesterday at $2.08.

Telsta (TSL): The Australia-based telephone company’s New Zealand operation has been hit by a severe fault which has crashed its email service. The fault occurred late yesterday, and according to press reports its Clearnet and Paradise.net services had not been restored this morning. Shares rose 0.3% yesterday to $3.42.

Themes of the day: The New Zealand dollar slipped below 79 US cents amid resurgent fears about the state of Europe’s sovereign debt. The spreads on Irish 10-year bonds over German bunds moved to a fresh record of 550 basis points amid increasing concerns over Ireland’s ability to repay its debt holders. Weighing on the New Zealand dollar was news of a bacterial disease being discovered in North Island kiwifruit vines. Kiwifruit makes up $1 billion of New Zealand’s exports. In late afternoon trade the Standard & Poor’s 500 Index fell 0.2% to 1,223.3, while in Europe the Stoxx 600 was flat at 271.91. Gold rose through the US$1,400 an ounce mark for the first time, and was last trading at $1,408.15.

Businesswire.co.nz

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