Stocks to watch: ALF, AMP, ANZ, CEN, NZO, PPL

Stocks to watch: ALF, AMP, ANZ, CEN, NZO, PPL

March 2 (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's economy continued to get a shot in the arm from rising commodities, with prices for locally-produced raw materials extending their gains for a sixth month, according to the ANZ Commodity Price Index. The price of milk powder rose to the highest level in three years in Fonterra Cooperative Group’s latest online auction overnight. The gDT-TWI price rose 5.9%, following a 3.9% jump in the previous auction two weeks ago. Risk aversion was the dominant theme on international markets yesterday, with investors retreating to so-called safe haven assets as the political unrest in the Middle East saw oil prices approach a two-and-a-half year high. On Wall Street, the Standard & Poor's 500 Index fell 1.5% while Europe's Stoxx 600 fell 0.6%.

Allied Farmers Ltd. (ALF): The financial services company which bought the Hanover Finance and United Finance loan books, widened its first-half loss as it burned through more cash to repay debt. The company made a net loss of $20.6 million in the six months ended Dec. 31, compared to a loss of $15.7 million a year earlier. Allied, which had its lending arm Allied Nationwide Finance Ltd. put into receivership last year, repaid $31.9 million in borrowings during the period, leaving it with cash of just $543,000 at the end of last year. The shares were unchanged yesterday at 1.8 cents.

AMP Ltd. (AMP): The wealth manager's proposed merger with Axa Asia Pacific Holdings has been approved by Australian Treasurer Wayne Swan, contingent on the two companies helping reemploy staff displaced in the process. The deal will now be put to the vote by Axa AP minority shareholders today. The shares fell 1.6% yesterday to $7.23.

Australia New Zealand Banking Group (ANZ): ANZ New Zealand and sister bank sister-bank National have cut one year, 18 month, two year and three year fixed-term interest rates following falls in wholesale interest rates and speculation Reserve Bank Governor Alan Bollard will cut the official cash rate in the wake of the latest Christchurch earthquake. One-year fixed term home loans have been cut by 50 basis points, the 18-month fixed rate was cut by 26 basis points, and the two-year fixed rate by 16 basis points. The shares rose 0.4% yesterday to $33.80 on the NZX.

Contact Energy Ltd. (CEN): First-half result for New Zealand's third biggest listed company beat expectations with operating profit coming in slightly ahead of the previous first-half at $225.5 million, according to Forsyth Barr analyst Andrew Harvey-Green, quoted on the ShareChat website. The main driver was lower than expected gas costs and operating costs, however strong hydro conditions were again a drag on the result, exposing Contact's long gas position. Harvey-Green estimates operating profit would have been as much as $45 million higher if Contact hadn't been long gas and had its gas peaker station operational. The shares rose 0.3%n yesterday to $6.17.

New Zealand Oil & Gas Ltd. (NZO): The ongoing political unrest in the Middle East has increased supply concerns in energy markets, which interruption in Libya's oil deliveries helping lift Brent Crude to US$115.44 a barrel, its highest level in almost two-and-a-half years. Shares in NZO, the energy exploration and production company, were unchanged yesterday at 87 cents.

Pumpkin Patch Ltd. (PPL): The children’s clothing chain posted a 44% drop in first-half profit, to within the range flagged in January, as tough trading conditions in Australia and New Zealand eroded sales at stores with high fixed costs. Net income fell to $8.1 million in the six months ended Jan. 31, from $14.3 million a year earlier. Sales fell 10% to $173.9 million, while selling expenses gained 5.1% to $86.6 million. The shares fell 4.4% yesterday to $1.31.

(BusinessDesk)

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