Stocks to watch: New Zealand equity preview

Tuesday 27th January 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 rose after National Association of Realtors figures showed sales of existing homes expectedly rose 6.5% to 4.74 million in December while the Conference Board's index of leading economic indicators gained 0.3% as money supply rose.

European stocks rallied more, with the Dow Jones Stoxx 600 Index up 3.1% to 188.06 after Barclays made an upbeat statement about earnings and said it didn't need to raise capital, sending its stock up 73% and leading a rally in financials. The New Zealand dollar fell to a record low below 40 euro cents and weakened against the US dollar and yen.

APN News & Media (APN): Tony O'Reilly's parent company, Independent News & Media, has completed its review into the 39.1% holding of APN, the owner of the New Zealand Herald and Radio Network. It said that there were "a number of unsolicited expressions of interest in APN," but the deteriorating market conditions had made it difficult for the parties to make a fully-financed bid. The company's stock has slumped over 50% in the last 12 months to $2.68.

Australian & New Zealand Banking Group (ANZ): The bank's NZX listed stock may gain for a second day after Barclays led a rebound in European financials, easing concern about the need for banks to tap the market for more capital. ANZ Bank climbed 6.4% to $15.91 yesterday after tumbling 8.5% tumble on Friday. Australian insurer AMP rose 2.1% to $6.20 yesterday.

GuocoLeisure (GLL): The company formerly known as Brierley Investments yesterday announced that profit in the six months ended December 31 fell about 3.3% to US$29.1 million, reflecting the depreciation of the pound and Australian dollar against the US dollar. Revenue fell 32% to US$201.8 million on lower hotel and property development returns. The shares last traded at 37 cents on the NZX on Friday.

ING Property Trust (ING): The property investor's ultimate parent, ING Group announced it will cut 7000 positions across its global operations after being hit badly by the financial crisis. The Dutch banker and insurer said it will post a large fourth-quarter loss, and will change its CEO. ING Property Trust's stock was unchanged on 63 New Zealand cents.

New Zealand Oil & Gas (NZO): Crude oil fell amid speculation waning economies worldwide will sap demand for fuel even as OPEC cuts output. Futures for March delivery fell 1.5% to US$45.76 a barrel on the New York Mercantile Exchange. The stock rose 2 cents to $1.26b yesterday.

Telecom Corp. (TEL): The nation's biggest telecommunications company and its competitor Vodafone Group Plc are resisting moves by the Commerce Commission to control the wholesale charge to make calls between fixed line and mobile phones. The Telecommunications Users Association of New Zealand claims mobile termination rates in New Zealand are high compared to other countries. The regulator set a Feb. 5 deadline for submissions into it inquiry. It fell 1% to $2.51 yesterday.

By Jonathan Underhill

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