Stocks to watch: Pyne Gould's MARAC CEO, Fletcher sale

Thursday 2nd April 2009

The following stocks may be active on the New Zealand exchange after developments since the close of trading yesterday.

Themes of the day: The US housing slump showed tentative signs of improvement in February, based on sales of existing homes, while manufacturing gained for a third month in March, stoking optimism the recession may be abating. Stocks on Wall Street rose and the kiwi dollar regained some ground from yesterday's slump, trading recently at 56.72 US cents.

Fletcher Building (FBU): The shares are halted for the completion of the company's capital raising, which may be as much as $505 million. Fletcher is taking advantage of a 17% gain in its stock price in the past month to raise funds now to strengthen its balance sheet. The first part of its capital raising raised $406.5 million. The shares rose 3.3% to $6.20 before being halted yesterday.

Kiwi Income Property Trust (KIP): New Zealand's largest listed property investor successfully completed its $50 million institutional placement. The capital raised will be used to repay debt, which had grown to a third of the company's assets. The halt on the shares, which last traded at 96 cents, has been lifted.

NZ Farming Systems Uruguay (NZS): The price of milk powder rose 3.6% on Fonterra Cooperative Group's controversial auctions for a second straight month to US$2,235 per metric ton. While the world's largest dairy exporter denies the auction site influences dairy prices, soft commodities, like dairy products, are beginning to show signs of stabilising. Stock in the company set up to export New Zealand's intensive dairy farming techniques to South America slipped 6.8% to 69 cents in trading yesterday.

Pyne Gould Corporation (PGC): Jeff Greenslade has been appointed chief executive of MARAC, the finance company owned by PGC. Greenslade was recently the managing director corporate and commercial banking for ANZ National Bank. Pyne Gould's stock has slumped over 45% in the past 12 months to $1.80.

Scott Technology (SCT): The company that makes processing equipment such as conveyer systems for meat companies yesterday announced that it wouldn't pay a first-half dividend as it concentrated on improving operating performance and cash flow. Scott posted a first-half loss of $474,000, down from a year-earlier loss of $$836,000. The shares last traded unchanged at 74 cents on March 27.

Sealegs (SLG): The manufacturer of amphibious boats gained 5.3% to 10 cents yesterday after the company cancelled 12 million employee share options. The shares have declined 66% in the past six months.

By Jonathan Underhill

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