Stocks to watch: Fletcher loss, Telecom dismisses MTR campaign

Wednesday 12th August 2009

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

Themes of the day: Fletcher Building posts first loss since 2001 as one-off costs dragged on the bottom line. The kiwi sank 0.8% to 66.69 US cents as stocks on Wall Street slid lower on renewed concern about an early global recovery and after a broking analyst downgraded his forecast for financials stocks in America. Finance Minister Bill English pushes for greater use of public-private partnerships.

Fletcher Building (FBU): New Zealand’s second-largest company on the exchange posted a net loss NZ$46 million loss, its first since 2001, compared to a $467 million profit last year. The construction company has closed plants in the past year and has had write down the value of its Formica unit. The stock fell 1.9% to $7.18 yesterday.

NZ Windfarms (NWF): The company installing wind turbines at the Te Rere Hau project said Windflow Technologies (WTL) had advised that its turbines for the development didn’t meet an agreed certification standard. Windfarms is seeking expert advice on whether the differences are material and said it reserves the right to seek remediation. Windflow tumbled 20% to $1.40. Windfarms declined 6.3% to 75 cents.

Pyne Gould Corp. (PGC): The finance company named former Macquarie Group executive John Duncan as head of its newly created asset management arm, Perpetual Asset Management. Pyne Gould is creating its enlarged funds management unit after agreeing to buy Equity Partners Asset Management, an asset manager controlled by Pyne director George Kerr for $18 million. The shares fell one cent to $1.33 yesterday.

Telecom Corp. (TEL): The largest-listed phone company dismissed claims by new mobile market rival Two Degrees that dropping mobile termination rates altogether will cut the cost of calls for customers. Two Degrees launched a campaign lobbying for removal of the fee in conjunction with groups including Federated Farmers and the Telecommunications Users’ Association. The shares fell 1.1% to $2.75 on the NZX yesterday.

Zintel Group (ZIN): Peter Revell yesterday resigned as managing director. He had been on extended leave until September 17 though had recovered from his health issues and decided to leave the company to be a management consultant, it said. The shares jumped 9% to 24 cents yesterday.

Businesswire.co.nz

Comments from our readers

No comments yet