Stocks to watch: Pan Pacific, Pyne Gould, Sanford, Telecom

Wednesday 30th September 2009

The following stocks may be active on the New Zealand exchange after developments since the close of trading yesterday.

Themes of the day: The National Bank Business Outlook, due today, will show whether rebounding confidence has been sustained, with some economists tipping a slight pullback. Russia’s central bank said it would probably keep its holdings of US dollars at around 30% of its reserves, helping lift the greenback. US consumer confidence unexpectedly fell this month, with the Conference Board’s consumer confidence index declining to 53.1 from a revised 54.5 in August.

Pan Pacific Petroleum (PPP): The oil company signed a farm-in deal to acquire a 15% interest in a Timor Sea block. Two drilling locations have been identified, the first on a prospect that may hold 195 million barrels of oil and a second that may have 90 million barrels. The shares were halted for the announcement, having last traded at 69 cents on September 25.

Pyne Gould Corp. (PGC): The shares tumbled 29% to a record low 50 cents yesterday, trimming the investment and finance group’s market value to $69 million as some investors sold ahead of its capital raising. The stock has shed 65% of its value in the past three months. The company is raising as much as $270 million selling shares at 40 cents apiece, seeking to restore a balance sheet eroded by write-downs on property loans.

Sanford (SAN): Fisheries Minister Phil Heatley yesterday increased the catch limit for hoki, the nation’s biggest export species, by 20,000 tonnes to 110,000 tonnes effective today. Heatley cited research and monitoring data showing the fishery had recovered in the past few years. The shares rose 5 cents to $5 yesterday.

Steel & Tube Holdings (STU): Former chief executive Nick Calavrias sold his shares in the building products company, according to its annual report. The shares fell 1 cents to $3.13 yesterday and have declined about 11% in the past month.

Telecom Corp. (TEL): The phone company $340 million worse off over six years under a proposal to use the Telecommunications Service Obligation levy to fund the bulk of the Government's $300 million rural broadband push, the Dominion Post reported. Chief executive Paul Reynolds indicated the company would oppose the plan. The shares fell 2 cents to $2.63 yesterday.

Tourism Holdings (THL): The campervan rental company is rated a ‘hold’ by Craigs Investment Partners analyst David Oxley, the ShareChat website reported. Trading conditions remain challenging with negligible earnings expected in 2010. Oxley said the impact of the global financial crisis on tourism is “obvious and ongoing." The shares were unchanged at 68 cents yesterday.

Businesswire.co.nz

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