Stocks to watch: ABA, ALF, FBU, NPX, NZX, SAT

Stocks to watch: ABA, ALF, FBU, NPX, NZX, SAT

Jan. 14 (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:

New Zealand-produced raw materials reached a new record high last month as global demand for commodities was solid at the end of last year, according to the ANZ Commodity Price Index. The index rose 2% to 302 in December, led by a 10% gain in beef prices, and a 5% increase in the price of skins.

New Zealand property values extended their decline in December for a ninth month, slipping back into negative territory, with the outlook still subdued for 2011, according to Quotable Value Ltd. Average property values in December were 0.9% lower than the same month a year earlier, across the country, although prices rose slightly in Auckland.

Global equities retreated overnight as a bigger-than-forecast increase in U.S. jobless claims cooled investor optimism on the fourth quarter earnings season. In afternoon trade the Standard & Poor's 500 Index fell 0.2% to 1283.25, while in Europe the Stoxx 600 fell 0.6% to 284.02.

Abano Healthcare Group (ABA): The specialist health clinic investor cancelled a quarter of its shares under a planned arrangement with the NZX after the company's share buyback and cancellation offer in November failed to attract sufficient support. The move is aimed at boosting earnings per share levels. The stock fell 26.8% yesterday to $4.88.

Allied Farmers Ltd. (AFL): The New Zealand taxman has rejected an attempt by an Allied Farmers shareholder to claim tax losses on shares acquired as part of the debt for equity swap with Hanover Finance. Over 16,000 Hanover Finance bondholders traded their holdings for 1.9 billion Allied Farmers shares in December 2009. The shares, which were valued at 20.7 cents at the time, were unchanged yesterday at 2 cents.

Fletcher Building Ltd. (FBU): The country's biggest construction company, which launched a A$741 million hostile bid for Australia's Crane Group, said preliminary discussions with the takeover target's major shareholders indicate its offer will be accepted, according to a Reuters report. Shares rose 1.1% yesterday to $7.96.

Nuplex Industries Ltd. (NPX): The industrial chemical and resin manufacturer said its manufacturing facilities in Queensland were unaffected by the floods. The company has a number of manufacturing and distribution sites in South East Queensland, the primary one being the resins plant at Wacol. Shares rose 0.6% yesterday to $3.52.

NZX Ltd. (NZX): The securities market operator announced that it was winding up operations of AXE ECN, an electronic trading platform that was to have launched in Australia as an alternative the ASX. Shareholders, which include Citigroup, Macquarie, Merrill Lynch, Goldman Sachs and Commonwealth Bank, said they do not "see opportunities for its business model to generate sustainable economic returns" after the company failed to gain regulatory approval – a failure that NZX chief executive Mark Weldon has previously labeled a politically motivated effort to protect the ASX in its home market. NZX shares were unchanged yesterday at $1.63.

Satara Cooperative Group (SAT): The kiwifruit grower, which aborted a merger with EastPack due to the outbreak of a bacterial vine disease, has appointed Tom Wilson as managing director after he held the role for the past eight months on an interim basis. Shares were unchanged yesterday at $1.00.

(BusinessDesk) 09:40:10

© Scoop Media