Stocks to watch: Fletcher insulation, NZX, ING Property sale

Thursday 4th 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: The New Zealand dollar tumbled as much as 3% as weaker US economic reports stoked demand for the greenback as the world’s reserve currency. Stocks on Wall Street snapped a four-day rally after figures showed companies cut more jobs than expected last month while a measure of home loan applications tumbled and the service sector stayed on contraction. Federal Reserve Chairman Ben Bernanke warned the Obama administration to rein in its soaring budget deficits, forecast to reach US$1.85 trillion this year, which risk undermining financial stability.

Apple Fields (APF): The property developer that grew out of an orchardist posted a first-half loss of $300,000, compared to a profit of $636,000 a year earlier, the company said yesterday. It wrote down the value of sections at its Kingfisher Point development, which are being marketed by St Laurence Lending under terms of a guarantee of an Apple Fields subsidiary. Still, it is optimistic the sections will net more than their written-down value. The shares last traded on May 28 at 5 cents.

Fletcher Building (FBU): The largest listed construction company in New Zealand is operating its Penrose Pink Batts production plants 24 hours as it prepares to take advantage of the government’s $323 million home insulation fund, the NBR reported. The stock gained 2.9% to $6.98 yesterday.

ING Property Trust (ING): The trust yesterday announced the sale of 43 College Hill, Auckland for $7.85 million, in line with its March 31 valuation. The Trust said it is continuing with its capital management strategy of selling non-core properties and using the proceeds to repay debt. The trust’s units rose 1.8% to 57 cents yesterday.

NZ Farming Systems Uruguay (NZS): The company that is developing dairy farms in South America using New Zealand intensive farming techniques fell 3.8% to 51 cents yesterday, the biggest decline on the benchmark index, after the price of milk powder slumped 12% in Fonterra Cooperative Group’s latest online auction. The drop at the auction has stoked concern protectionist moves by Europe and the US will undermine any recovery in dairy prices.

NZX (NZX): The Competition Tribunal in South Africa approved the merger between Johannesburg Stock Exchange and the Bond Exchange of South Africa, of which NZX owns about 22%. The BESA board recommended acceptance of JSE’s offer of 125 rand per share. NZX shares fell 15 cents to $7.70 yesterday and have soared 59% this year.

Restaurant Brands NZ (RBD): The operator of the KFC, Pizza Hut and Starbucks Coffee franchises in New Zealand jumped 1.1% to 96 cents yesterday after posting a 4.3% gain in quarterly sales as pizza sales growth returned for the first time in four years. The shares have surged almost 60% in the past six months. “The current economic environment has not adversely impacted on the continued overall positive sales growth for the company,” it said in a statement.

Ryman Healthcare (RYM): McDouall Stuart values Ryman's shares at $2.09 compared with the closing price yesterday of $1.63, according to the ShareChat website. The brokerage rates the retirement village a “buy.” The company’s undeveloped land is enough to build 1,790 units, adding to its existing portfolio of 3,783 units.

Businesswire.co.nz

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