Stocks to watch: Fletcher insulation, ING Property

Thursday 9th April 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 edged higher on Wall Street as concerns eased over the prospects of a weak first-quarter earnings season and investors anticipated government aid will flow to insurance companies with banking units. In New Zealand, government figures on electronics transactions and accommodation are due today, providing a snapshot of consumer spending and demand.

AMP (AMP): The Australian insurer and wealth manager that is also listed on the NZX 50 Index successfully raised A$296 million through the issue of the new AMP Notes security. The stock slid 1.6% to $6.30 in trading yesterday.

Fletcher Building (FBU): The construction company may benefit from an accord between the Key administration and the Greens to create a fund for home insulation. Fletcher is the biggest supplier of fiberglass insulation in New Zealand and also may benefit from Australian government incentives to insulate houses. The shares fell 1.6% to $6.05 yesterday.

ING Property Trust (ING): The trust said it is taking advantage of lower interest rates to cancel $100 million of interest rate swaps, at a cost of $12 million to be recouped over the next three-to-four years. ING is also reducing the limit on a revolving credit facility held with ANZ National Bank to $500 million from $600 million. With the sale of non-core assets and a 17% stake in ING Medical Properties Trust, ING's debt at ANZ has reduced to $410 million, it said. The units fell 1.8% to 56 cents yesterday.

New Zealand Refining Co. (NZR): The nation's only oil refiner said it processed 5.9 million barrels between January and March. The company was running at full capacity after a maintenance shutdown in February. The average gross refinery margin was $US9.31 per barrel in the January to March period. The margin fell as low as $US5 a barrel in March, it said. The shares traded unchanged at $6.96 yesterday and is up 19% this year.

Nuplex Industries (NPX): The specialty chemical maker fell 3.2% to 30 cents yesterday and traded at low as a record 27 cents. Shareholders must take up their 7-for-one entitlement at 23 cents a share or see their holding diluted by 87.5%, the company said this week. Since trading at $2.30 on October 3, the company has shed $165 million of market value. The company has urged investors to take or sell their rights before their due dates this month.

Satara Cooperative Group (SAT): Kiwifruit growers have to dump 3.6 million kilograms of green export fruit due to a slump in global demand for kiwifruit, Businessday reported. More fruit is likely to be dumped if the recession fails to ease next year. The kiwifruit cooperative trades infrequently, and was quoted yesterday at 67 cents.

Xero (XRO): Shares of the online accounting software provider climbed 11% to a record $1.32 yesterday after the company completed a $23 million placement, supported by a major shareholder.

By Jonathan Underhill

Comments from our readers

No comments yet