Stocks to watch: Air NZ, Fletcher Building, Telecom

Monday 10th August 2009

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

Themes of the day: Shares rallied on Wall Street and in Europe after America’s unemployment rate unexpected fell to 9.4% while the pace of job losses slowed. New Zealand earnings season kicks off in earnest this week, with Fletcher Building expected to post a drop in profit of about 37%, before one-time items, when it reports on Wednesday.

Air New Zealand (AIR): The national carrier rose 2.6% to $1.18 on Friday, matching a level it last reached on September 3. The national carrier said it will offer trans-Tasman flights twice a week in the lead-up to the Christmas holidays, aiming to reap the benefits of a joint marketing campaign with the government to attract more Australians.

Fletcher Building (FBU): The nation’s biggest construction company is expected to report an annual profit before one-time items of $295 million, according to Forsyth Barr, down from $467 million in the previous year. Including costs to close plants and write down the value of its Formica unit, the company may post a net loss of about $50 million, its first since 2001. The shares fell 0.4% to $7.32 on Friday and have gained 28% this year.

NZX (NZX): The share market operator on Friday reported first-half profit soared to NZ$60.8 million against $4.97 million on gains from asset sales. The company plans to retain its earnings to chase more business opportunities rather than making a special dividend. The shares slipped 1.3% to $7.61 on Friday and have soared 54% this year.

Telecom (TEL): The launch of third mobile company 2 degrees may not result in a steep drop in prices of pre-paid phones, Telecom mobile director Paul Hamburger said, according to the Dominion Post. The nation’s biggest phone company is “confident that we offer our prepaid customers good value for money," he said, according to the report. Telecom shares rose 2 cents to $2.77 on Friday.

Turners & Growers (TUR): Kiwifruit exporter Zespri has appointed David Goddard, QC as part of moves to counter calls Turners & Growers for the deregulation of the industry. TUR has lodged proceedings at the High Court in Auckland claiming Zespri has abused its dominant position. The shares fell 1 cent to $1.55 on Friday.

Businesswire.co.nz

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