Stocks to watch: New Zealand equity preview

Friday 4th July 2008

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

Themes of the day: Crude oil futures rose to as much as a record US$145.85 yesterday. The European Central Bank raised its benchmark rate to 4.25% to quell inflation, driving down the euro against the dollar. New Zealand�s benchmark NZX 50 reached a new three-year low yesterday. BHP Billiton and Rio Tinto Group led declines in mining company stocks yesterday on concern demand for raw materials will wane as global growth slows.

Affco Holdings (AFF): Beef exports to South Korea are at risk after meat tainted with the insecticide endosulfan sparked an investigation by the New Zealand Food Safety Authority (NZFSA) after a complaint from its South Korean counterpart, The Press newspaper reported.

Delegat�s Group (DGL): The winemaker said it appointed Andre Gaylard as chief financial officer. The shares were last at NZ$1.80.

Infratil (IFT): The infrastructure investors� shares were halted today pending a statement expected before mid-day. The shares fell to about a five-year low yesterday of NZ$1.77.

PGG Wrightson (PGW) and Livestock Improvement Corp (LIC): World prices for dairy products fell in June, according to the ANZ Commodity Price Index.

Telecom Corp (TEL): The largest company on the benchmark NZX 50 Index fell yesterday to a new 15-year low NZ$3.28.

Warehouse Group (WHS): Workers at New Zealand�s biggest discount chain are being targeted by a National Distribution Union campaign aimed at encouraging them to join the organization, according to the Dominion Post. The shares fell to a two-year low NZ$3.77 yesterday.

By Jonathan Underhill

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