Stocks to watch: F&P Healthcare, Methven outlook, NZX

Friday 5th June 2009

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

Themes of the day: Crude oil surged more than 5% after figures showed US jobless claims fell for a third week and Goldman Sachs analysts forecast the price could reach US$85 a barrel by the end of this year. Prices of metals including copper rallied. Stocks on Wall Street advanced. New Zealand’s dollar is heading for its biggest weekly slide since April, paring its decline from an eight-month high. It was recently at 63.45 US cents.

Contact Energy (CEN): The biggest utility on the NZX 50 plans to hold its prices unchanged until at least October 2010 in Eastland, Hawke’s Bay, Christchurch, Hawke's Bay, Wellington and Christchurch, according to company advertisements. The shares fell 5 cents to $5.95 yesterday.

Fisher & Paykel Healthcare (FPH): The medical equipment maker, which garners almost 80% of its revenue in US dollars, rose 1.3% to $3.07 yesterday as the New Zealand dollar tumbled from an eight-month high. “The fact that it turned round and came down helped sentiment,” said Barry Lindsay, research manager at First NZ Capital.

Methven (MVN): The tap maker is rated a “buy” by Adrian Allbon, an analyst at Goldman Sachs JB Were, according to the ShareChat website. The company's cautious outlook statement, flagging a tough first half before picking up is "consistent with our view and is understandable, given Methven is a later-cycle product." The shares rose 1.5% to $1.28 yesterday.

New Zealand Oil & Gas (NZO): Crude for July delivery rose US$3.48 to US$69.60 a barrel on the New York Mercantile Exchange, rebounding from the previous day’s tumble on optimism an improving jobs market signals an eventual recovery in the US economy. The shares fell 5 cents to $1.55 yesterday.

NZX (NZX): The manager of New Zealand’s stock exchange yesterday announced plans to launch a whole milk powder futures contract in coming weeks, extending its foray into the agricultural sector. The company has acquired assets and developed market platforms outside of its core stock and bond listing business, diversifying its earnings. “The NZX has done some really good deals,” said Carmel Fisher, managing director of fund manager Fisher Funds. Shares of NZX fell 10 cents to $7.60 yesterday and have soared 56% this year.

PGG Wrightson (PGW): The ANZ Commodity Price Index rose 2.7% last month, bringing its three-month advance to 6.5%. Wool rose 9.1% from April while beef prices climbed 6.1% and dairy rose 5%. In New Zealand dollar terms, prices weakened as the kiwi strengthened last month, undermining the benefits of higher world prices. The shares rose 1 cent to $1.31 yesterday and are little changed this year.

Turners & Growers (TUR): Chairman Tony Gibbs told shareholders at their annual meeting yesterday that earnings “are tracking close to the same period in 2008” and he is hopeful of a lift in the full year. Profit in 2008 was $14.1 million. Gibbs also called for the abolition of monopoly export rights for kiwifruit, saying offshore buyers “are crying out for alternatives” and Turners has received interest from potential customers outside of Zespri distribution. Turners stock last traded on June 3 at $1.75.

Businesswire.co.nz

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