Stocks to watch: JTM, PGW, SLG, STU, PEB, TEL

Stocks to watch: JTM, PGW, SLG, STU, PEB, TEL

July 29 (BusinessWire) – The following stocks may be active on the New Zealand exchange after developments since the close of trading. All prices are in New Zealand dollars unless specified.

Themes of the day: Reserve Bank Governor Alan Bollard raised the official cash rate a quarter point to 3% as expected, saying that because the economic recovery is showing some weakness, future rate increases will be more moderate than previously expected. The dollar dropped 50 points after his announcement to US$0.7216, reflecting a weaker than anticipated upward path for interest rates. Data on U.S. durable goods unexpectedly fell in June, and the Dow Jones dropped 0.54%. The dollar index, which measures the greenback against a basket of six major currencies, rose 0.04% to 82.19.

Jasons Travel Media (JTM): The accommodation listings business yesterday reiterated that earnings growth will stall this year, while saying “the fragility of the New Zealand and international economies makes the announcement of a specific figure difficult.” The shares last traded on June 30 at 40 cents and have dropped 27% this year.

PGG Wrightson (PGW): New Zealand’s largest rural services company is set to reap $15.5 million from the sale of its 11.5% holding in Farming Systems Uruguay if Singapore's Olam International succeeds with its takeover offer at 55 cents per Farming Systems share. Wrightson rose 3.9% to 54 cents yesterday.

Sealegs Corp. (SLG): The manufacturer of amphibious boats holds a shareholder vote at its annual meeting on Friday to allow Mauritius-based Avenport Investment to subscribe for 31 million new shares at 20 cents apiece, gaining a 39.9% stake. The company plans to use the funds to build its global brand. The stock jumped 26% yesterday to 24 cents.

Steel & Tube Holdings Ltd. (STU): The domestic supplier of metal and components is still experiencing challenging trading conditions in the construction and rural sectors said Craigs Investment Partners in ShareChat. Steel prices are volatile, and apart from the manufacturing sector, the outlook for construction has deteriorated. Though the balance sheet is in good shape, it is difficult to see price momentum in the absence of a catalyst. Its shares lifted five cents yesterday to $2.20.

Pacific Edge Ltd. (PEB): - The cancer diagnostics biomedical company has obtained another two patents to add to its pipeline of detection tools it is creating. Chief science officer Parry Guilford said an opportunity to provide a safe, easier test for gastic cancer, which is currently freely available each year for all over 40 Japanese, is one ultimate target for the just awarded N.Z. patent for the disease. Its shares last traded at 22 cents.

Telecom Corp. (TEL): Pacnet, the owner of Asia’s largest undersea cable, has teamed with local start-up Pacific Fibre to build a US$400 million cable linking New Zealand, Australia and the U.S. Pacific Fibre aims to challenge Telecom Corp.’s Southern Cable. The shares rose 1.6% to $1.96 yesterday.

(BusinessDesk) 09:39:47

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