Stocks to watch: Kiwi Income, oil price, Oyster Bay

Wednesday 13th May 2009

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

Themes of the day: New Zealand’s banking system is still relatively stable, though the quality of the sector’s assets is deteriorating, the Reserve Bank said in its latest Financial Stability Report.

The US trade deficit widened for the first time in eight months in March as exports dropped while oil imports climbed, slowing the decline in overall imports.

Kiwi Income Property Trust (KIP): Property investors are looking to unwind the trust’s NZ$26 million sale of Wellington’s BP House by approaching head tenant BP Oil New Zealand, and suggesting it can exercises right of first refusal to buy the building on the same terms, the Dominion Post reported.

BP retail manager Frank van Hattum confirmed there had been inquiries, according to the report. BP has until the end of June to exercise its option. The situation potentially allows BP, whose lease has 21 years to run, to buy the waterfront property then immediately sell it on for a profit. A number of parties are interested in the property though what they are prepared to pay hasn’t be tested, the report said. Kiwi Income slipped 1.1% to 93 cents.

New Zealand Oil & Gas (NZO): Oil advanced after China reported a 14% in imports in April. Deliveries rose to a daily 3.9 million barrels, according to China’s customs department Crude oil for June rose 0.6% to US$58.83 a barrel on the New York Mercantile Exchange. The shares fell 4 cents to $1.49 yesterday.

NZX (NZX): The stock exchange operator is showing operational resilience in a challenging macro environment, according to ABN Amro Craigs analyst Daniel Reynolds, the ShareChat website reported. “Management's outlook commentary was positive and relayed a high degree of confidence in NZX's business model," Reynolds says, according to the report. The shares fell 2.4% to $8 yesterday.

Oyster Bay Marlborough Vineyards (OBV): The company’s vines had favourable spring growing conditions, “resulting in excellent December fruit set,” chairman Sandy Maier said in the grape grower’s interim report. The shares rose 2% to $2.50 yesterday and are down 7% this year.

Pike River Coal (PRC): The coal miner climbed 1.9% to $1.08 yesterday, its second daily gain after it responded to an ASX query on the recent surge in its stock price by pointing to two recent broker analyst reports which have” re-rated the company’s share price outlook, and positive news reports relating to the steel industries in China and India.” The shares are up 38% in the past month.

Businesswire.co.nz

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