Stocks to watch: AIA, MFT, OGC, RAK, RYM, TEL

Stocks to watch: AIA, MFT, OGC, RAK, RYM, TEL

July 30 (BusinessWire) – 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: Building consents for June are due out today. Residential sales volumes sank to the second-lowest volume in a June month in the past decade according to Real Estate Institute data this month. Shares on Wall Street weakened, led by tech stocks. The kiwi dollar traded at 72.39 U.S. cents from 72.74 cents late yesterday. It tumbled more than half a U.S. cent yesterday after the central bank flagged a more moderate pace of interest rate increases and said the currency’s strength wasn’t warranted.

Auckland International Airport Ltd. (AIA): The nation’s busiest gateway is about to get busier after the company announced that Qantas subsidiary Jetstar is to expand its trans-Tasman services and increase its domestic services. A new daily Jetstar Auckland-Melbourne service begins in December, and a three times a week service to Cairns commences next April. There will be 24 weekly Wellington-Auckland flights from the start of November, up three. AIA stock rose 1% yesterday to $1.98.

Mainfreight Ltd. (MFT): The trucking firm expects to post 30% gain in first-quarter EBITDA after keeping costs in check and fattening its margins, managing director Don Braid told shareholders at their annual meeting yesterday. The stock climbed 0.9% yesterday to $6.55.

OceanaGold Corp. (OGC): The operator of the Macraes goldfield yesterday said that selling 100% of its gold production into the spot market yielded a 226% improvement in quarter on quarter cash operating margin, the company says in its second quarter report for the three months to June 30. It was the first quarter that the company has been hedge free, which “significantly increased our ability to strengthen the balance sheet and has provided the flexibility direct investment back into the business," said chief executive Paul Bibby. The stock rose 4.4% to $3.60 yesterday.

Rakon Ltd. (RAK): The crystal timing devices manufacturer’s $700,000 purchase of in-receivership France-based competitor Temex should speed up turning around its French operations First NZ Capital analyst Jason Familton said in ShareChat. Thirty year old Temex, like Rakon, makes high precision OCXO crystals, and focuses on the space, aviation, undersea telecommunications, mining, exploration and defence markets. Execution of the purchase and change in management is the key, Familton said. Rakon fell one cent yesterday to $1.05.

Ryman Healthcare (RYM): The Christchurch-headquartered retirement home operator, is looking for a suitable site for its first Australian village, shareholders were told at yesterday’s annual general meeting. The NZX listed company, which has 21 villages with 4,400 units or rooms in New Zealand, has been carefully studying the Australian market for several years, said chairman David Kerr. The stock last traded at $2.04.

Telecom Corp. (TEL): New Zealand’s largest phone company announced that it is looking at strategic options for its Australian division, AAPT. iiNet may be lead bidder for part of the business, with shares in the Australian company suspended ahead of an announcement about a transaction. Telecom rose 1.5% to $1.99 yesterday.

(BusinessDesk)

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