Friday 23rd January 2009 |
Text too small? |
Themes of the day: Stocks on Wall Street fell after Microsoft announced weaker-than-expected earnings, figures showed a surge in unemployment benefit claims and housing starts tumbled to a record low. The Dow Jones Industrial Average fell 2.3% to 8041.16.
Australian & New Zealand Banking Group (ANZ): US banks tumbled overnight on Wall Street, as economic figures stoked fears of a prolonged recession, erasing much of the gains from the previous session. Citigroup and Bank of America fell 14%. ANZ Bank fell 4 cents to $16.34 on the NZX yesterday and Westpac Banking Corp. rose 3.5% to $19.25.
Contact Energy (CEN): The biggest utility on the NZX 50 was cut to 'hold' from 'buy' at Goldman Sachs JBWere following the company's warning this week that underlying earnings would fall as much as 23% this year because of transmission constraints, higher gas costs and a drop in generation. The stock rose 2.4% to $6.76 yesterday.
Fletcher Building (FBU): Housing starts in the US, where Fletcher owns the Formica laminates business, tumbled 15.5%, seasonally adjusted, to an annual rate of 550,000 units in December, the lowest level since records began in 1959, according to the Commerce Department. A separate report showed house prices fell 8.7% in November from the same month of 2007. The shares rose 11 cents to $5.75 yesterday.
New Zealand Oil & Gas (NZO): Crude oil fell after US Energy Department figures showed inventories rose 6.1 million barrels to 332.7 million barrels as the economic slump curbed demand for fuel. Crude for March delivery fell 2.2% to US$41.74 a barrel on the New York Mercantile Exchange. The oil company's stock rose 2 cents to $1.26 yesterday and has gained 8% in the past three months.
Telecom Corp. (TEL): The nation's biggest phone company sank between $40 million and $70 million into its failed online shopping website Ferrit, the Independent reported, citing analysts including Lance Wiggs. Telecom shares climbed 4 cents to $2.51 yesterday. Investors who bought the shares five years ago have been handed a 55% loss.
Tourism Holdings (THL): Accommodation providers reported a 6.6% decline in sales in November, government figures on retail sales showed this week. That's the biggest decline in almost three years and adds to evidence that the global downturn is crimping demand for tourist services. The stock was unchanged yesterday at 70 cents and has dropped about 50% in the past six months.
No comments yet
Second St John withdrawal of labour takes effect tomorrow with further strikes likely
Sanford Appoints Independent Director
CRP ADVISES CLOSURE OF SHARE OFFER TO EXISTING INVESTOR
Devon Funds Morning Note - 14 August 2024
OCR 5.25% - Monetary restraint tempered as inflation converges on target
Consumers still need due diligence as new deposit takers emerge.
Woolworths strike: staff asked to dress up in Disney costumes for a week on their own dollar
Turners Invests in Quashed Online Insurance Platform
PGW Reports on Challenging Year
Arvida Announces Executive Team Changes