Stocks to watch: Auckland Airport, NZOG, Seeka

Thursday 16th July 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 rallied on Wall Street and In Europe amid signs US industrial production may be picking up, Intel Corp. forecast better than expected sales and the Federal Reserve’s Open Market Committee upgraded its outlook. Metals and oil gained and the greenback fell. The kiwi dollar climbed to near 65 US cents. Government figures today are expected to show inflation abated in the second quarter to an annual rate of 1.8%, near the middle of the central bank’s target range.

Auckland International Airport (AIA): The decision of New Zealand’s busiest gateway to defer increases in aeronautical charges will hurt earnings in 2010, said Geoff Zame, an analyst at ABN Amro Craigs, according to the ShareChat website. Zame lowered his 2010 earnings-per-share forecast by 3% as a result of the decision cut international landing fees by 5% and keep domestic fees unchanged. He estimates net profit will be $97.2 million in 2010, down from a forecast $104.2 million in the year ended June 30. He rates the company a ‘buy.’ The shares fell 2% to $1.51 yesterday.

Fletcher Building (FBU): Companies that garner revenue from the US may benefit from optimism the recession in the world’s biggest economy is abating, as manufacturing data slowed its decline and the price of copper rallied. The shares climbed 7 cents to $6.67 yesterday.

New Zealand Oil & Gas (NZO): Crude oil jumped by the most in six weeks after Energy Department figures showed a bigger-than-expected decline in US stockpiles of crude. Inventories fell by 2.81 million barrels to 344.5 million last week, according to the Energy Department. Crude oil for August delivery rose 3.4% to US$61.54 a barrel on the New York Mercantile Exchange. The shares rose 2 cents to $1.55.

OceanaGold Corp. (OGC): the operator of the Macraes mine was unchanged at $1.30 yesterday, having soared 360% this year. Gold futures for August delivery rose 1.8% to US$939.40 an ounce in New York overnight.

Port of Tauranga (POT): The port company’s dispute with NZL Group over its claims to rights to operate container services is likely to be argued in court, the Bay of Plenty Times reported. NZL has lodged a formal application for a terminal operator's licence to re-establish operations at Sulphur Point, competing with the port company. The shares were unchanged at $6.10 yesterday.

Seeka Kiwifruit Industries (SEK): The company which handles around 26% of New Zealand's kiwifruit crop jumped 13% to $2.60 yesterday after announcing it will write off its investment in Vital Foods this year, with a $1.79 million impairment in earnings. Vital had proposed a capital raising which would water down Seeka’s stake.

Businesswire.co.nz

Comments from our readers

No comments yet