Stocks to watch: Air NZ, Eastern Hi Fi, NZOG, Vector

Tuesday 15th September 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 kiwi dollar held above 70 US cents as the greenback sank to a 12-month low against the euro. The European Union said the region’s economy is at a turning point and probably emerged from recession this quarter. A trade war may be brewing between the US and China, after China’s retaliated for tariffs imposed on its tires with an anti-dumping probe on US chicken imports.

Air New Zealand (AIR): Delta Air Lines, the world’s biggest carrier, raised its forecast third-quarter operating margin to 3% to 4% from an earlier estimate of 1% to 3%, citing lower fuel and financial costs. Air NZ shares fell 4 cents to $1.21 yesterday.

Eastern Hi Fi Group (EHF): The home audio equipment company reported a full-year loss of $979,761, in line with its forecasts. The retailer has whittled its outlets down to three stores, the original Howick site, plus Khyber Pass Road and Willis Street, Wellington. Its wholesale division, Avalon Pacific Marketing, is showing “strong growth and now trades profitably,” it said. The NZAX-listed stock last traded at 8 cents on August 3.

National Property Trust (NAP): The trust’s manager yesterday said it had settled the sale of two Auckland properties, the Rialto Centre and Carlton DFK Tower, for a combined price of $49 million. The stock traded unchanged at 49 cents yesterday.

New Zealand Oil & Gas (NZO): The shares climbed 3.1% to $1.66 yesterday, the biggest gainer on the NZX 50, after brokerages speculated on the value to its shares of a successful result from its drilling to extent the Tui field and its Hoki and Albacore prospects. “The activity is all in that Taranaki basin area and they have themselves said it is highly prospective,” said ASB Securities private client adviser Stephen Wright. Analysts have speculated success could add 50 cents to 80 cents to the share price.

Solutions Dynamic (SDL): The NZAX-listed company posted an operating loss of $238,000, a 5.9% improvement on the 2008 year, missing the company’s own expectations. “In the face of last year’s results against our stated expectations we are hesitant to be too confident but currently our prospects are good,” the company said yesterday. The shares were unchanged at 35 cents yesterday.

Vector (VCT): The lines company is rated ‘hold’ by Morningstar, according to the ShareChat website. Morningstar cut its 2010 profit forecast by $10 million to $158 million because of lower-than-expected earnings from gas and increased costs. The stock is rated ‘hold’ according to the consensus of seven recommendations compiled by Reuters. The shares fell 1 cent to $1.99 yesterday.

Businesswire.co.nz

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