Stocks to watch: AIA, CAV, NZS, PRC, OGC, RBD, WHS

Stocks to watch: AIA, CAV, NZS, PRC, OGC, RBD, WHS

Sept. 21 (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: The National Bureau of Economic Research declared that the recession in the US, which started in December 2007, ended in June 2009. The 18 month long recession is the longest since WWII. Investor optimism has been on the rise in recent weeks as likelihood of a double-dip recession fades. The Standard & Poor’s 500 Index closed at a four-month high after flurry of positive corporate news increased investor optimism. New Zealand Institute of Economic Research is set to release its consensus forecast for September today.

Auckland International Airport Ltd. (AIA): The airport’s board has recruited former Virgin Blue boss Brett Godfrey to stand for election as a director of the company at the annual meeting on Oct. 28. Godfrey brings with him significant international airline experience, according to AIA chairman Tony Frankham. Shares rose 0.5% yesterday to $2.08.

Cavalier Corp. (CAV): The shares rose 3.3% to $3.10 yesterday, the highest level since late 2007, amid speculation rebuilding work after the Canterbury earthquake will spur demand for carpets. The latest Treasury and central bank estimate of the costs of damage from the quake is $4 billion, including $2 billion for residential housing and contents, $1 billion for commercial property and $1 billion for infrastructure.

NZ Farming Systems Uruguay (NZS): Olam International yesterday said it had acceptances under its takeover offer that lifted its interest above 50%, the threshold for the deal to proceed. Farming Systems’ stock rose 1.5% to 70 cents yesterday. PGG Wrightson (PGW), which has agreed to sell its 11.5% stake in Farming Systems to Olam, was unchanged at 59 cents.

Pike River Coal (PRC): Chairman John Dow said yesterday that the company needs more short-term funding to sustain its rate of underground mine development, with capital costs higher than expected in the latest quarter and installation taking longer than forecast. The shares fell 1.8% to $1.09 yesterday. New Zealand Oil & Gas (NZO), which owns 29% of Pike, fell 1.5% to $1.29 yesterday.

OceanaGold Corp. (OGC): The gold miner has completed a technical study for its Didipio Gold, Copper Project in Luzon, Philippines, with reserves estimated at 1.41 million ounces of gold and 374 million pounds of copper. OceanaGold chairman Jim Askew said the study demonstrates “a robust project with a long mine life”. Shares rose 4.3% yesterday to $5.30.

Restaurant Brands NZ Ltd. (RBD): The fast food chain operator’s sales rose 3.7% to $100.4 million and same store sales increased 3.9% in the three months to Sept. 13. The company said it enjoy sustained growth for its KFC brand and saw a return to same store sales growth for Starbucks Coffee, but Pizza Hut sales still remained slightly down on last year. Shares rose 0.4% yesterday to $2.50.

The Warehouse Group (WHS): The listed retailer’s decision to increase its dividend payout ratio from 75% of adjusted earnings to 90% is

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