Stocks to watch: AMP, Warehouse, Rakon, VCT, XRO

Stocks to watch: AMP, Warehouse, Rakon, VCT, XRO, WID

July 23 (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: Stocks on Wall Street and in Europe climbed on better-than-expected data and more strong earnings from U.S. companies, with the Standard & Poor’s 500 up 2.3%. The decision of European regulators to bring forward the release of the stress test results for the region’s lenders has markets anticipating an upbeat outcome. The kiwi surged to 71.42 U.S. cents from 71.86 cents. Consumer confidence fell this month, according to an ANZ-Roy Morgan poll, as more people feel worse off than they did a year ago.

AMP Ltd. (AMP): The Treasury’s new deputy chief executive Gabs Mahklouf kept the superannuation debate alive, saying future governments will have to address unsustainable spending. One idea that needs to be considered is the expanding the use of products like KiwiSaver, he said. AMP had 100,000 KiwiSaver members at the end of last year. The shares fell 3 cents to $6.45 yesterday, and have tumbled 23% this year.

Methven Ltd. (MVN): The tap-maker yesterday forecast that it will deliver a "better result" in the financial year to March 2011. It wasn’t specific. The company is still cautious about the fragility of the New Zealand and UK economic which could hamper its recovery. The shares rose 4.1% to $1.51 yesterday.

Rakon Ltd. (RAK): The maker of crystal oscillators used in cellphones and GPS units yesterday announced it will buy the assets of French rival Temix for 400,000 euros, gaining access to satellite and space station transport applications to complement its existing European operations. The stock rose 2.2% to 95 cents yesterday.

Vector Ltd. (VCT): First NZ Capital rated the electricity and gas distributor ‘underperform’. The shares have been hurt by proposals from the regulator to set regulated rates of return at levels which Vector believes fail to recognize the harsher lending environment post the global financial crisis. The stock fell 2.8% yesterday to $2.05.

Warehouse Group (WHS): The biggest retailer on the NZX 50 led declines among consumer stocks after the ANZ-Roy Morgan Consumer Confidence poll showed confidence fell for a second straight month. Warehouse dropped 2.2% to $3.53 yesterday, while Pumpkin Patch (PPL) fell 2.1% to $1.85 and Hallenstein Glasson Holdings dropped 0.8% to $3.63.

Widespread Portfolios Ltd. (WID): The mining investment group's 4.3%-owned Asian Mineral Resources has announced a 55% increase in resources in the disseminated nickel orebody at its Ban Phuc mine, following a 40% increase in June. Total resource at the site has increased to 119,200 tonnes, with an in-situ market value today of US$2.35 billion. The stake in Asian Mineral amounts to 25% of Widespread's total assets. Its shares last traded on July 19 at 11.9 cents.

Xero Ltd. (XRO): Sam Morgan, the cashed-up founder of the TradeMe auction site, increased his holding in Xero Ltd. to 4.86% after buying shares from the online accounting firm’s founders. Morgan agreed to buy about 1.4 million shares at $1.45 apiece from Rod Drury, Hamish Edwards and chief operating officer Alastair Grigg, chairman Phil Norman told shareholders at their annual meeting yesterday. The stock rose 0.7% to $1.41 yesterday.

(BusinessDesk)

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