Stocks to watch: AMP, DIL, MHI, TEL, WDT, WSI

Stocks to watch: AMP, DIL, MHI, TEL, WDT, WSI

Jan. 18 (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 Real Estate Institute of New Zealand is set to release numbers on house sales for the December month. In November the housing market showed some signs of recovery with prices and volumes picking up for the first time since April, but it was still largely seen as a buyer's market. Rising demand for soft commodities helped support the New Zealand dollar, with the kiwi last trading at 77.22 U.S. cents from 76.77 cents yesterday. The price of milk power is likely to continue to rise at Fonterra Cooperative Group’s second online auction tomorrow, as global supplies come under pressure.

AMP Ltd. (AMP): The Australian wealth manager's A$13.3 billion bid for rival Axa Asia Pacific Holdings got the thumbs up from the deal's independent expert report, which said the buyout would be the best interests of minority shareholders. Grant Samuel's report was more circumspect about the French parent Axa SA’s acquisition of the company’s Asian business, though declared it a “fair and reasonable” offer. Under the proposal, AMP will buy the entire unit and sell back the Asian businesses to the French parent. Shares fell 0.6% yesterday to $6.66.

Diligent Board Member Services Inc. (DIL): The corporate governance software developer reported an 80% jump in new annualised license fee income to US$1.56 million ($2.1 million) for the three months to Dec. 31. Coupled with US$10 million ($13.2 million) in cumulative annualised license fees, the result is the company's best quarterly performance to date. Shares were unchanged yesterday at 67 cents.

Michael Hill International Ltd. (MHI): Durante Holdings, which represents the founding Hill family, reiterated its partial takeover offer for a 5% stake in the jewellery retailer at 90 cents a share. If successful, the deal would give the family control over the company with a 50.2% shareholding. Shares fell 2.2% yesterday to 89 cents.

New Zealand Wool Services International Ltd. (WSI): Wool prices look set to rise due to supply shortages in Australian and improving demand from Europe, according to the world's second-largest producer of the fibre, quoted on Bloomberg. Cape Wool SA said worsening seasonal conditions in Western Australia have forced it to cut output predictions for the 2010-2011 season to 335 million kilograms, from 340 million kilograms previously. Shares in the wool exporter and scourer rose 4.4% yesterday to 47 cents.

Telecom Corp. (TEL): New Zealand's biggest phone company is expected to be quizzed about its data security practices by the privacy commissioner after a marketing company employed by rival Slingshot allegedly gained access to 2.1 million of its customers records. Shares fell 0.9% yesterday at $2.26.

Wellington Drive Technologies Ltd. (WDT): The manufacturer of electric motors saw 13 trades yesterday as part of its capital raising scheme. The company, which is looking to raise $8.4 million, is offering one new share for every existing share at a heavily discounted rate of 1.25c each. The rights rose to 0.6 cents yesterday, while shares were unchanged at 2 cents.

(BusinessDesk)

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