Stocks to watch: Fletcher's advance, Cavotec order

Monday 30th March 2009

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

Themes of the day: Stocks fell in Europe and the US as the end of the quarter looms. The US dollar rebounded against the euro on Friday amid speculation the European Central Bank will follow the Federal Reserve in buying its own bonds to lift the region's economy after data showed it remains mired in a slump.

A2 Corp. (ATM): AMP Capital Investors increased its stake in the company, which owns and licenses techniques to identify milk with a protein variant claimed to have health benefits, to 12.4% from 11.1%, according to a filing today. The shares traded unchanged at nine cents on Friday and have declined 37% in the past six months.

Auckland International Airport (AIA): The nation's busiest gateway has agreed terms with DFS Group for arrangements to facilitate the arrival in August of the second duty-free operator at Auckland Airport. The agreement allows the airport company to meet requirements of the Commerce Commission and doesn't change its earnings guidance, it said. The stock was unchanged at $1.70 on Friday.

Cavotec MSL (CCC): The engineering firm won a second order for its MoorMaster automated mooring system from the St. Lawrence Seaway Management Corp., which manages the trade link between North America's Great Lakes and the Atlantic Ocean. The shares were unchanged at $3 on Friday and is little changed this year.

Fletcher Building (FBU): The shares rose 4.2% to $6.40 on Friday and are up 17% in the past month, tracking gains in Australian companies exposed to the building sector on optimism incentives and grants across the Tasman will help lift the industry. Investors are also optimistic the company will benefit from the government's accelerated spending on infrastructure.

Metlifecare (MET): The rest home operator's rights issue closed oversubscribed last week. Allotment of the 35 million new shares from the rights issue will occur on tomorrow. ChairmanJim McLay said he was "very pleased with the results of the capital raising" which will strengthen the company's balance sheet. The shares rose 3.5% to $1.50 on Friday.

Steel & Tube Holdings (STU): The company said in its annual report that it expects market conditions "in the short term to be as tough as we have seen for a very long time with a good deal of uncertainty." Deteriorating trading conditions "are expected to reduce our second-half result substantially."

By Jonathan Underhill

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