Stocks to watch: AIR, NZS, NZO, OGC, TUR, TWR

Stocks to watch: AIR, NZS, NZO, OGC, TUR, TWR

July 1 (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:
Offshore leads are expected to dominate the market today with no major local data on the local front. Investor appetite for higher-yielding, or riskier assets, was resilient in the offshore session after Greece passed its second tranche of austerity bills. That saw global equities rally for a fourth day, with the Standard & Poor’s closing 1% higher to 1,320.64, and Europe’s Stoxx 600 gaining 1.1 to 276.86, its highest level in almost a month.

Air New Zealand Ltd. (AIR): Qantas and Jetstar have grounded their flights again due to the volcanic ash cloud drifting over the South Island, while the national carrier continued to operate its services as per usual. Air NZ shares were unchanged yesterday at $1.12.

New Zealand Oil & Gas Ltd. (NZO): The energy exploration and production company's chief executive David Salisbury announced yesterday he would be stepping down. His resignation comes just days before the start of hearings of the Pike River coal mine commission of inquiry, although the company has denied any connection. Shares in NZOG, which holds a 29% stake Pike River Coal Ltd., fell 1.2% yesterday to 83 cents.

NZ Farming Systems Uruguay Ltd. (NZS): A group of activist shareholders has won out against Olam International Ltd. after the Singaporean food group failed to acquire the 90% stake it needs in the South American dairy operator to trigger compulsory acquisition of the remaining shares. At the close of its offer period, on June 29, Olam's second takeover offer for the company left it with an 85.93% controlling stake. NZS shares were unchanged yesterday at 70 cents.

OceanaGold Corp. (OGC): Signs that Greek-related volatility is abating has seen demand for the gold fall, with the hedge metal last trading at US$1,501.60 cents an ounce, down from US$1,508.79 yesterday. Shares in OceanaGold, the operator of the Macraes and Reefton goldfields, rose 2.2% yesterday to $3.30.

Tower Ltd. (TWR): AMI Insurance Ltd., the company being eyed by Tower as a possible acquisition, announced yesterday it has finalised a $1.3 billion reinsurance package, allowing it to offer cover. The company's re-insurance programme has more than doubled, up from the $600 million per event in the year to June 30, to $1.3 billion per event in the year beginning July 1. Tower shares fell 1.3% yesterday to $1.54.

Turners & Growers Ltd (TUR): The fruit and vegetable marketer says it's being courted by a number of global companies looking at buying the business, according to a Fairfax Media report. T&G is 65% owned by Guinness Peat Group, which is in the process selling its assets and returning the proceeds to shareholders. TUR shares fell 1.2% yesterday to $1.70.

(BusinessDesk)

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