Stocks to watch: AIR, BTU, MVN, NZS, NZO, VCT

Stocks to watch: AIR, BTU, MVN, NZS, NZO, VCT

by Jason Krupp

Dec. 14 (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: Rising commodity prices, the likely extension of Bush-era tax cuts and signs that China is likely to hold off on rate hikes gave global equity markets a shot in the arm. In late afternoon trade the Standard & Poor's 500 Index rose 0.4% to 1,245.66, while in Europe the Stoxx 600 rose 0.3% to 276.99, just shy of a one year high.

Improving risk appetites also spurred demand for commodity currencies such as the New Zealand dollar, which rose almost a cent against the greenback. The kiwi was last trading at 75.67 U.S. cents from 74.84 cents yesterday.

October retail trade figures and the Treasury’s Half Year Economic and Fiscal Update are due today, with a serious short term deterioration in the fiscal position foreshadowed owing to the slower than expected New Zealand economic recovery.

Retail sales statistics are expected to be soft. The Real Estate Institute of New Zealand is also set to release November house sales data.

Air New Zealand Ltd. (AIR): The national carrier is expected to benefit from an influx of tourists from China and India, as the emerging middle class in two of the world's fastest growing economies look to holiday abroad. The airline has been in discussions with Air India to form a code share agreement as part of the Star Alliance. Shares rose 0.7% yesterday to $1.42.

Bathurst Resources Ltd. (BTU): The new entrant West Coast coalminer expects to create 165 coal mining jobs in about nine months at the first of its open-cut Buller Coal Project mines, situated inland from Westport. By 2015, Bathurst aims to be exporting up to 4 million tonnes a year of high-grade coking coal. Shares rose 2.2% yesterday to 92 cents.

Methven Ltd. (MVN): The tap and bathroom fittings manufacturer is rated as "buy" according to broker McDouall Stuart, quoted on the ShareChat website. The company has grown its market share in Australia and is aggressively repositioning its business in the U.K. and aims to breakeven by the end of the year, the broker said. Shares fell 0.6% yesterday to $1.67.

NZ Farming Systems Ltd. (NZS): The South American dairy farm operator said chief executive Alastair de Raadt will leave the company when his contract expires on Jan. 31 next year. De Raadt, who was already based in Uruguay, was appointed in September. Share were unchanged yesterday at 58 cents.

New Zealand Oil & Gas Ltd. (NZO): The energy exploration and production company that owns a 19% stake in Pike River Coal Ltd. announced it had placed Pike in receivership following series of explosions at its West Coast mine that killed 29 and shut production. The announcement saw trading in Pike River suspended until further notice. NZOG Shares fell 2.3% yesterday to 87 cents.

Vector Ltd. (VCT): The lines company has signaled that it will struggle to meet the $40 to $60 a month "naked" ultra-fast broadband pricing without a greater share of the risk of roll-out being borne by the government. Vector missed the cut yesterday when government announced three prioritised bidders for the UFB rollout which included Telecom Corp., Enabled Networks and Flute JV represented by Aurora Energy Ltd. Shares fell 2.5% yesterday to $2.35.

(BusinessDesk) 09:27:25

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