Stocks to watch: AIA, ECO, FBU, MHI, NZX, PRC

Stocks to watch: AIA, ECO, FBU, MHI, NZX, PRC

Sept. 15 (BusinessDesk) – 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: U.S. retail sales rose for a second month, helping soothe concerns the world’s biggest economy is heading back into contraction. Shares on Wall Street weakened, paced by financials amid reports that Bank of America may be forced to buy back $20 billion of home loans. The kiwi dollar traded as high as 73.95 U.S. cents, the highest since late January, amid speculation the U.S. Federal Reserve is ready to extend its quantitative easing policies.

Auckland International Airport Ltd. (AIA): The company is set to benefit from an increased number of airlines stopping in Auckland, which is expected to lift capacity by 850,000 seats over the next 12 to 18 months, according to Aegis Equities Research analyst Nichiket Moghe, quoted on the ShareChat website. Moghe said high interest and depreciation expenses are likely to constrain earnings growth in the medium term. Shares rose 0.5% yesterday to $2.08.

Ecoya Ltd. (ECO): The scented candle company yesterday said it completed its placement of 6.3 million shares, raising $4.75 million to partially fund its acquisition of cosmetics company Trilogy Natural Products Ltd. The shares were sold at 75 cents each, or a 6.3% discount to the last trading price of 80 cents.

Fletcher Building Ltd. (FBU): The nation’s biggest construction company rose 1.4% to $8.48 yesterday, the highest close since April 21, amid expectations it will benefit from demand for construction and building materials in the clean-up of the Canterbury earthquake. Steel & Tube Holdings (STU), which produces materials for the construction industry, rose 1.6% to $2.57 yesterday, a four-month high.

Michael Hill International Ltd. (MHI): The jewellery manufacturer and retailer yesterday said its founding family has abandoned plans to lift its stake in the jeweler to 50.1% from 48% after the Takeovers Panel indicated it wouldn’t grant an exemption to takeover rules. The stock fell 1.5% to 68 cents yesterday.

NZX Ltd. (NZX): Open Country Cheese has laid a complaint with the Securities Commission about the exchange’s plan to use Fonterra’s online milk powder price as a benchmark for its dairy futures trading, Fairfax Media reported. The shares rose 4% to $1.55 yesterday.

Pike River Coal Ltd. (PRC): The coal mine developer yesterday named mine manager Peter Whittall as new chief executive to replace long serving chief Gordon Ward. Whittall takes the position effective Oct. 2. The shares rose 3 cents to $1.09 yesterday.

(BusinessDesk)

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