Stocks to watch: AFF, AIR, CAV, CEN, FBU, IMP, TEL

Stocks to watch: AFF, AIR, CAV, CEN, FBU, IMP, TEL, TUA

Aug. 20 (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: Global equities lost ground overnight, as after two more economic reports suggested the U.S. recovery was grinding to a halt. Jobless claims rose to a seasonally adjusted 500,000 last week in the U.S., and in a separate report, the Philadelphia Federal Reserve Bank said its business activity index dropped to minus 7.7, the lowest since July 2009. The Dow Jones Industrial Average fell 1.4% to 10,271.21, and the S&P 500 dropped1.7% to 1,075.63, its lowest close in a month.Two of New Zealand largest listed companies, Telecom and Contact Energy, have released their full-year financial results today, with net earnings down but largely in line with analysts’ expectations.

AFFCO Holdings (AFF): Talley’s Group yesterday extended the deadline on its 37 cents a share offer to minority shareholder to Sept. 20, saying the price offers an attractive exit opportunity. Shares Affco traded at 38 cents yesterday, above Talley’s offer price.

Air New Zealand Ltd. (AIR): The national airline carried more passengers in July than in the same month of 2009, with the strongest growth coming from domestic routes and across the Tasman Sea. The national carrier hauled 1.16 million passengers in July, up 7.2% from the same month last year, it said in a statement. Revenue passenger kilometres (RPKs) rose 6.8% and capacity climbed 1.7%. The shares rose 0.9% to $1.18 yesterday.

Cavalier Corp. (CAV): New Zealand’s only listed carpet maker is set to release its annual results today. The company is expected to deliver net earnings of $16.4 million, up 20% on the previous period, according to a forecast by Forsyth Barr. Shares were unchanged yesterday at $2.55.

Contact Energy Ltd. (CEN): The biggest utility on the NZX 50 released its full-year results today, with earnings before interest, tax, depreciation, amortisation, changes in fair value of financial instruments and other significant items fell 4% to $427 million for the year, versus a forecast of $445 million by Forsyth Barr. It gave no specific guidance for 2011 though expected a second-half pickup on increased availability of gas. The shares climbed 0.7% to $5.82 yesterday.

Fletcher Building Ltd. (FBU): The nation’s biggest construction company announced the acquisition of Australian Construction Products, which supplies roading products such as safety barriers and has annual sales of more than A$20 million. The shares jumped 9 cents to $7.43 yesterday.

ING Medical Properties Trust (IMP): The specialist investor in health clinics yesterday posted a 13% increase in distributable profit as it boosted rental income and maintained a near-full occupancy rate. ING Medical boosted interest income 6.9% to $24.3 million, and lifted its overall occupancy rate to 99.6%. The shares were unchanged at $1.25 yesterday.

Telecom Corp. (TEL): The nation’s biggest phone company posted its full-year results to June 30, with net earnings down 4.5% to $382 million from the previous period, ahead of a forecast range of $367 million to $370 million. Earnings growth was muted as the migration to mobile phones erodes sales on its copper lines. The shares rose about 1% to $2.10 yesterday.

Turners Auctions (TUA): The company posted a 6% increase in first-half profit to $1.46 million, saying the used vehicle market in New Zealand has made a slow recovery over the first half of 2010 from the lows experienced in 2009. The shares were unchanged at $1.26 yesterday.

(BusinessDesk)

© Scoop Media