Stocks to watch: AIA, AIR, FBU, IFT, MHI, XRO

Stocks to watch: AIA, AIR, FBU, IFT, MHI, XRO

by Jason Krupp

Jan. 13 (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: Statistics New Zealand is set to release data on electronic card transactions for the key December retailing period today. Expectations are moderately upbeat after Paymark, which processes around three quarters of the country's credit card and eftpos transactions, released numbers which showed kiwis spent 3.9% more over this Christmas than they did in the previous festive period.

Global equities rallied strongly after Portugal sold 1.25 billion euros worth of debt at a yield of 6.72%, easing fears that it may be the next country in line for a bailout. In late afternoon trade the Standard & Poor's 500 Index rose 0.7% to 1283.23, while in Europe the Stoxx 600 Index closed 1.4% higher at 285.79, its highest level in 12 months.

The U.S. Federal Reserve’s so-called ‘beige book’ showed a pick-up in the American labour market and an increase in manufacturing. The report, which collates anecdotal information about the various sectors across six regions, was slightly more optimistic in its tone than previously.

Auckland International Airport Ltd. (AIA): New Zealand busiest gateway rose 1.4% yesterday to $2.24 after China Southern Airlines said it will bypass Melbourne in favour of a direct thrice-weekly route to Auckland. Government support won over China's biggest carrier, in a deal that's set to add an annual $75 million to the local economy, and strengthen ties with the economic hub of the world's most populous country.

Air New Zealand Ltd. (AIR): The national carrier announced a code sharing agreement with Virgin Atlantic on routes between New Zealand and the U.K. The airline's passengers will be able to book on Virgin Atlantic between London Heathrow and San Francisco and between Hong Kong and Sydney using Air NZ's NZ flight code. Shares fell 0.7% to $1.52.

Fletcher Building Ltd. (FBU): Crane Group, which is facing a hostile takeover bid from New Zealand's biggest construction firm, may have approached other potential buyers including Wolseley Plc, the world's largest plumbers and builders merchant, according to Reuters, quoting Australian media reports. Fletcher's has offered one Fletcher share and A$3.47 in cash for every Crane share. Fletcher shares rose 0.5% yesterday to $7.87.

Infratil Ltd. (IFT): NZ Bus, a subsidiary of the infrastructure investor, said it will source its Auckland buses from British firm Alexander Dennis. The bus manufacturer will supply 120 vehicles for some 25 million pounds, and they will be assembled locally. Shares rose 0.5% yesterday to $1.95.

Michael Hill International Ltd. (MHI): The jewellery manufacturer and retailer lifted its half-year earnings forecast after stronger sales from its operations in Australia, Canada, and New Zealand. Earnings before interest and tax for the six months to Dec. 31 are expected to be in the range of $32m to $34m compared to $30.3m for the corresponding in the previous year. Shares were unchanged yesterday at 88 cents.

Xero Ltd. (XRO): The cloud-based accounting platform provider announced it has expanded its automated bank feed functionality to include feeds from more than 2,000 banks and financial institutions across the U.S. and Canada. Automated feeds are already available to customers in Australia, the United Kingdom and New Zealand. Shares fell 3.4% yesterday to $2.90.

(BusinessDesk) 09:51:51

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