Stocks to watch: Air New Zealand, Auckland Airport

Wednesday 15th 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 on Wall Street sank as optimism dwindled on weak data out of the US including a drop in retail sales. Goldman Sachs Group Inc. is raising US$5 billion in a bid to repay its TARP obligation and shed executive pay caps. The New Zealand dollar slipped as investors eschewed higher-yield, or riskier assets, and returned to safety.

Air New Zealand (AIR): The national carrier's main competitor may sack up to 1500 people as it slashed its full-year profit forecast to between A$100 million and A$200 from A$500 million the year before. By happenstance, the kiwi carrier is running a promotion that allows Air New Zealand Airpoints members to upgrade their status based on their Qantas Frequent Flyer status, according to the National Business Review. The shares rose 2.1% to 98 cents yesterday.

Allied Farmers (ALF): The rural services and finance group is looking to raise $7.5 million to build its balance sheet and reduce core debt. Shareholders will be offered six new shares for every seven they own at 40 cents per share. The stock was unchanged on 65 cents in trading yesterday.

Auckland International Airport (AIA): The main gateway the nation may benefit from an increase in incoming visitors if more Australian tourists avoid Fiji and Thailand due to ongoing political turmoil, BusinessDay reports. Tourism New Zealand's Cas Carter said New Zealand is running a large promotion in Australia, and is a strong alternative for families wanting to travel, but concerned about safety. Its stock sank 1.8% to $1.63 on the exchange yesterday.

People Telecom (PEO): A telecommunications company that traded infrequently on the exchange has been delisted.

Telecom (TEL): The largest listed company on the exchange lost more of the retail broadband market last year, slipping to a 57% share from 61% the previous year. Fixed line services improved last year, according to the Commerce Commission report into the sector. Its shares rose 0.4% to $2.37.

By Jonathan Underhill

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