Stocks to watch: AIR, CAV, NZX, PLU, PGC, RBC

Stocks to watch: AIR, CAV, NZX, PLU, PGC, RBC

July 11 (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 government statistician is set to release electronic card spending numbers for June today. The market will be looking for a pickup in consumer spending following a set of upbeat business confidence surveys.

Global risk appetites were dented after non-farm payroll data showed the U.S. added just 18,000 jobs in June, well short of the 105,000 improvement forecast. The Standard & Poor's 500 Index fell 0.7% to 1,343.80, Europe's Stoxx 600 fell 0.8% to 273.76, and the 19-commodity Thompson Reuters Jefferies CRB index fell 0.8% to 343.55.

Air New Zealand Ltd. (AIR): The national carrier rose 0.9% on Friday to $1.15 after the U.S. Department of Justice dropped the airline from its investigation into cartel behavior in the air cargo market. Air NZ, which has spent the last five years defending itself against the U.S. charges, has also escaped censure from the European and South Korean regulators. It is still under investigation in New Zealand.

Cavalier Corp. (CAV): The listed carpet maker fell 0.5% on Friday to $3.78 after the High Court in Wellington put its $40 billion bid to buy New Zealand Wool Services International Ltd. on hold, pending the outcome of Godfrey Hirst's court case. The Australian carpet maker is challenging the Commerce Commission's decision to allow Cavalier to acquire WSI and establish a wool scouring monopoly in New Zealand.

NZX Ltd. (NZX): The securities market operator, locked in a legal battled with the former owners of Clear grain exchange, has asked auditor KPMG for a speedy valuation of the platform whose software was worth $7.8 million as at Dec. 31. Grant Thomas, who is being sued by NZX for breach of warranty, co-founded the Melbourne-based grain exchange before selling it to NZX and becoming an employee. NZX stock fell 4% on Friday to $2.40.

Pulse Utilities New Zealand Ltd. (PLU): The electricity retailer claims it is a victim of smear campaign by rivals questioning its solvency, according to a Fairfax Media report. Since its creation in 2000, Pulse Energy has racked up $31 million in losses. Last month Pulse announced that Buller Electricity would take control of the company in return for $5 million in cash and offering $9 million in guarantees. Shares in Pulse were unchanged on Friday at 15 cents.

Pyne Gould Corp. (PGC): The financial services company has secured a $14 million stake in National Australia Bank’s loan to Equity Partners Infrastructure Company No. 1 Ltd. (EPIC). The deal lets the PGC-related fund off the hook on a likely default and will help the orderly sale of EPIC’s assets, the investment company said in a statement. PGC shares were unchanged on Friday at 37 cents.

Rubicon Ltd. (RBC): The forestry-based biotech company announced that it had extended the terms and size of its bank debt facility to finance its ArborGen Inc. subsidiary, which was recently forced to scrap plans to list in the U.S. The company's original debt facility with ANZ National Bank Ltd. has been extended to July 1, 2013 and increased to US$20 million dollars. Rubicon shares were unchanged on Friday at 60 cents.

(BusinessDesk)

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