Stocks to watch: AIR, ANO, EBO, NZO, NZR, OGC, SAT

Stocks to watch: AIR, ANO, EBO, NZO, NZR, OGC, SAT

March 15 (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: With no data on the local front, the market will again be looking offshore for direction. Rising risk aversion overnight saw stocks in Europe and on Wall Street fall on concern that the disasters in Japan, the world’s No. 3 economy, might stunt global growth. In late afternoon trade the Standard & Poor's 500 Index fell 0.6% to 1,296.39, while Europe's Stoxx 600 closed 1.1% lower to 272.51.

Air New Zealand Ltd. (AIA): The national carrier lowered its guidance for the full-year, saying it won’t be profitable in the second half because the financial impact of the Christchurch quake has been more severe than expected and demand in Japan will be hurt by the devastation earthquake and tsunamis. Normalised full-year earnings are expected to be below $100 million, it said. The shares fell 1.7% yesterday to $1.19.

AMP NZ Office Ltd. (ANO): The office property investor lowered its 2012 earnings guidance on the back of rising debt costs, changes in tax rules, and a rent review. The company said it expects 2012 earnings of between 5.1 cents per share and 5.4 cents, the equivalent of $50.9 million to $53.8 million. That would reflect a fall in profit of as much as 16%, with this year’s earnings forecast to be between 5.9 cents a share and 6.1 cents a share. The shares fell 1.2% yesterday to 81 cents.

Ebos Group (EBO): The medical supplies company looks poised to make another acquisition in Australia with cash on hand of $17 million, no debt and a $106 million funding facility in place, according to broker McDouall Stuart, quoted on the ShareChat website. That fits with the company's stated goal of matching New Zealand revenue in Australia within five years. The broker is forecasting net profit will fall to $24.8 million in the year ending June from $25.5 million the previous year before rising to $28.1 million in 2012 and $30.9 million in 2013. The shares were unchanged yesterday at $7.42.

New Zealand Oil & Gas Ltd. (NZO): Global oil prices have retreated from recent highs, with Brent Crude last trading at US$113.74 a barrel, after a drop in demand following Japan's 9.0 magnitude earthquake and tsunami. The North Pacific country is the third biggest crude importer globally. Share in NZO, the energy exploration and production company, rose 1.1% yesterday to 93 cents.

New Zealand Refining Co. (NZR): Demand for oil refining capacity is expected to spike after a number of the processing sites in Japan – the world’s third biggest importer of crude oil – were shutdown in the wake of Friday's 9.0 magnitude earthquake and tsunami. That comes after the oil refiner already reported that refining margins were on the rise, having averaged US$6.17 a barrel in the year ended Dec. 31, ahead of a projected $6.06 per barrel. The shares rose 3.7% yesterday to $5.08.

OceanaGold Corp. (OGC): Demand for gold continues to grow as rising volatility on global markets saw investors stock up on safe haven assets, with the metal last trading at US$1,425.60 an ounce. The VIX, a measure of the implied volatility of S&P 500 index options, rose to 22.15 from 21.43 yesterday, its highest level since Feb. 23. Shares in the gold miner fell 4.3% yesterday to $3.30.

Satara Cooperative Group Ltd. (SAT): The kiwifruit group reported a 23% drop in revenue to $43.7 million in the year ended Dec. 31, and a net loss of $4.8 million. The net loss included a one-time accounting loss of $2.4 million on the sale of a property. The shares last traded at $1 on Oct. 1 last year.

(BusinessDesk)

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