Stocks to watch: Auckland Airport, KIP, NZO, PGW

Stocks to watch: Auckland Airport, Kiwi Income, NZO, PRC

July 7 (BusinessWire) – The following stocks may be active on the New Zealand exchange after developments since the close of trading in the last session. All prices are in New Zealand dollars unless specified.

Themes of the day: Milk powder prices tumbled 15% in Fonterra Cooperative Group’s latest online auction, on increased Northern Hemisphere production and uncertainty about the pace of global economic growth. Shares on Wall Street rose after the Independence Day holiday, with the Dow Jones Industrial Average climbing 0.6%. Shares rallied across Europe.

Auckland International Airport Ltd. (AIA): The country’s busiest gateway said it attracted four new property development projects worth some $29 million last week. The four new deals lifts total projects construction or committed in the airport business district over the past 12 months to some $115 million, it said. The shares rose 0.5% to $1.91 yesterday.

Kiwi Income Property Trust (KIP): The trust’s convertible notes are set to convert to shares, which will lead to an index re-rating, Ricky Ward, domestic equities manager for Tyndall Investment Management . Ward said there is also speculation KiwiSaver plans will increase their exposure to listed property trusts, he said. The shares rose 2.2% to 92 cents yesterday.

New Zealand Oil & Gas (NZO): Crude oil futures fell 0.2% to US$71.98 a barrel in New York, a month low. The shares fell 3 cents to $1.20 yesterday. The company said this week that output from its 12.5%-owned Tui oilfield has been cut by 300,000 barrels because of an extended shut-down at the Pateke-3H well.

PGG Wrightson Ltd. (PGW): The drop in milk powder prices in Fonterra’s latest auction may signal softening of farmer incomes and dent sales at the nation’s biggest rural services company, which counts 40,000 farmers as customers. The shares rose 2 cents to 49 cents yesterday.

Pike River Coal (PRC): The coal mine developer extended its gains, rising 4.5% to 93 cents yesterday after Banpu Pcl, Thailand’s biggest coal producer, agreed to acquire the rest of Australia’s Centennial Coal for A$2 billion, prompting speculation the sector may be undervalued.

(BusinessDesk)

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