Stocks to watch: Air NZ, Telecom, NZ Oil & Gas

Monday 15th June 2009

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

Themes of the day: The Dow Jones Industrial Average turned positive for the year, climbing 0.3% amid signs the recession in the world’s biggest economy may be abating. The Reuters/University of Michigan Survey of Consumers reported its preliminary index of confidence rose to 69 from 68.7 last month, the highest since September, when Lehman Brothers collapsed. Oil fell from an eight month high, will; remaining above US$72 a barrel.

Air New Zealand (AIR): Pacific Blue may exit the New Zealand market within 18 months because of competition for passengers from discount rival Jetstar and Air New Zealand, according to Macquarie Equities analyst Russell Shaw. Virgin Blue’s Pacific Blue unit and Qantas’s Jetstar would struggle in a crowded domestic market, he said, according to Fairfax. Jetstar may have a lower cost base than Pacific Blue in New Zealand, buffering it against a protracted price war, the report said. The shares fell 1 cent to $1.03 on Friday.

Investment Research Group (IRG): The financial services group reported a full-year profit of $88,000. Since balance date IRG announced the sale of an Auckland-based advisory business at a premium to book value. The shares last traded at 1.4 cents on June 8. The shares have fallen 85% in the past year.

Michael Hill International (MHI): The jeweller rose 3% to 69 cents on Friday, leading gains among New Zealand retailers after government figures showed retail sales rose more than expected in April.

New Zealand Oil & Gas (NZO): The energy company fell 1.2% to $1.60 on Friday after Origin Energy, the operator of the Kupe gas field, said raw gas wouldn’t flow until the fourth quarter, later than expected. NZOG owns 15% of the field, which is expected to meet 15% of the nation’s annual gas demand over the next 15 to 20 years.

Telecom (TEL): The Commerce Commission is considering launching an investigation into whether Telecom breached the Commerce Act by offering "loyalty discounts" to wholesale customers that didn’t unbundle its services, the Dominion Post reported. The shares were unchanged at $2.55 on Friday.

Wakefield Health (WFD): The private hospital operator is rated a “buy” by McDouall Stuart. The company is benefiting from an aging population as public hospitals come under more funding pressure and struggle to meet growing demand for services. Profit will rise to $11.2 million this year from $10.2 million last year, according to the report. The shares were unchanged at $9.25 on Friday.

Businesswire.co.nz

Comments from our readers

No comments yet