Stocks to watch: DGL, NZO, NZX, TEL, WID, VCT, XRO

Stocks to watch: DGL, NZO, NZX, TEL, WID, VCT, XRO

Oct. 26 (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: Offshore markets continued to rally as the U.S. dollar weaken overnight after the G-20 meeting of finance ministers failed to reach any meaningful accord over the so-called ‘currency wars’. On Wall Street the Standard & Poor’s 500 Index rose 0.2% to 1,185.62 in late afternoon trade, and the Stoxx 600 rose 0.3% to 267.42 in London. The New Zealand dollar neared a 10-year low versus its Australian counterpart amid growing expectations the interest rate gap between the trans-Tasman neighbours will continue to widen, and was at 75.56 Australian cents.

Delegat’s Group (DGL): Two of grape grower Oyster Bay's largest shareholders are unlikely to accept an anticipated $1.80 takeover bid by winemaker Delegat’s, according to press reports, saying that the offer was too low. Delegat's, which holds 55% of Oyster Bay, is expected to put forward the offer in a week's time. Oyster Bay shares were unchanged at $1.60, and last traded on Oct. 12. Delegat’s shares were unchanged at $1.77.

New Zealand Oil & Gas Ltd. (NZO): Crude oil climbed in the U.S. overnight as the U.S. continued to weaken, and was last trading at US$82.21 a barrel. Shares in Oil & Gas, the energy exploration and production company, were unchanged on Friday at $1.26.

NZX Ltd. (NZX): New Zealand’s securities market operator said it is not concerned about being isolated in the in the Singapore exchange’s takeover offer for the Australian Securities Exchange, according to press reports. The takeover offer values the ASX at A$8.4 billion, and could potentially be the first major consolidation of exchanges in Asia-Pacific. Shares fell 1.9% on Friday to $1.55.

Telecom Corp. (TEL): Uncertainty surrounding the government's ultra fast broadband plans is likely to continue to weigh on Telecom into next year, according to First NZ Capital analyst Greg Main, quoted on the ShareChat website. Crown Fibre Holdings is expected to release its recommendations for the final UFB framework, and the participants, by the end of the week, which will determine if Telecom will split into two separate companies, a retail arm and a lines company. Shares rose 3% on Friday to $2.09.

Vector Ltd. (VCT): On Friday the country’s largest listed network utility company said it is getting ready to test new rights under the Commerce Act to challenge the Commerce Commission’s emerging view about appropriate regulated rates of return for monopolies. The Commission released its final draft of “input methodologies” for determining rates of return for regulated monopolies just ahead of Vector’s annual meeting. Regulated earnings represent 60% of Vector’s revenue. Shares fell 0.4% on Friday to $2.36.

Xero Ltd. (XRO): Rod Drury, founder of the accounting software firm, is calling for all government to issue all Kiwi businesses with a unique tax number in order to improve bureaucratic efficiencies. Currently a business needs separate numbers to deal with various government agencies. On Friday Xero announced that it had secured $4 million from PayPal co-founder Peter Thiel to fund its expansion into the U.S. Shares rose 6% on Friday to $1.58.

Widespread Portfolios Ltd. (WID): The investment holding company listed on the main board of the NZX, which owns a 10% stake in an undersea phosphate mining project on the Chatham Rise, said it is considering an overseas listing to fund the project, which is still in the discovery phase. The markets under consideration are Australia’s ASX, the Hong Kong Stock Exchange and Canada’s TSX. Shares were unchanged on Friday at 16 cents.

(BusinessDesk)

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