Stocks to watch: CEN, FBU, NZO, NZS, PGC, WDT

Stocks to watch: CEN, FBU, NZO, NZS, PGC, WDT

Jan. 12 (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:
Attention is likely to be focused on New Zealand's biggest export partner, where signs that flooding in Queensland appears to be worsening saw Australian markets pare back the extent of expected interest rate hikes this year. The monsoon floods in Australia’s Queensland, which may have killed some 30 people, have washed out the agricultural sector, including wheat fields, and closed the state’s coal mines.

Global equities rallied amid signs of a better-than-expected quarterly earnings season from U.S. corporate, after Aluminium producer Alcoa Inc. reported earnings of 21 U.S. cents a share, beating market expectations. The Standard & Poor's 500 Index rose 0.3% to 1273.57, while in Europe the Stoxx 600 closed 1.3% higher at 281.98.

Contact Energy Ltd. (CEN): Shares in New Zealand's third-biggest listed company announced David Baldwin will transition out of his secondment as managing director over the next three months to take up the position of chief development officer at Origin Energy. Dennis Barnes, general manager of energy risk management at Origin, will replace Baldwin. Shares rose 0.7% to $6.23.

Fletcher Building Ltd. (FBU): Australia's Crane Group has rejected Fletcher's revised takeover offer after New Zealand's biggest construction company was obliged to increase the cash component of its bid for Crane shares by A4 cents, to A$3.47 a share. Fletcher’s average weighted share price fell after the hostile bid was announced. "Fletcher may have to rethink its pricing as it doesn't look like the offer is getting too much traction with the Crane board," said Grant Williamson, a director at Hamilton Hindin Greene. Shares rose 0.6% yesterday to $7.83.

New Zealand Oil & Gas Ltd. (NZO): Oil prices continue to climb amid supply fears after the Alaskan pipeline was closed following reports of a leak. Brent Crude was last trading at US$97.89 a barrel, its highest level since September 2008. Shares in the energy exploration and production company were unchanged yesterday at 86 cents.

NZ Farming Systems Uruguay Ltd. (NZS): The South American dairy farm operator appointed a director from Olam International, the Singaporean company which recently acquired a 78% stake in the company. Chairman John Parker has been replaced by fellow director Vivek Verma, who headed the coffee, dairy and commodity financial services divisions at Olam. Parker, who was appointed chairman in December 2009, has also resigned as director. Shares were unchanged yesterday at 58 cents.

OceanaGold Corp. (OGC): Shares in the gold miner rose 2.4% yesterday to $4.35 after gold prices recovered from subdued levels after resurgent European sovereign debt concerns boosted demand for the hedge metal. It was last trading at US$1382.66, from US$1368.80 previously.

Wellington Drive Technology Ltd.: The energy-efficient motor manufacturer fell 19.2% yesterday to 2.1 cents after trading in limited rights to the company’s deeply discounted one-for one $8.4 million capital-raising commenced yesterday. The company is offering new shares at 1.25c each - an 86% discount on the 7.5 cents price in November when the issue was announced.

(BusinessDesk)

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