Stocks to watch: ING Property, Restaurant Brands, Contact Energy

Wednesday 10th June 2009

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

Themes of the day: Prices of oil and copper rose as the US dollar weakened. Figures out in New Zealand today include electronic card spending, which provides a snapshot of consumer activity, and terms of trade. The kiwi dollar edged above 62 US cents and was recently at 62.50 cents. The central bank is due to release its review of monetary policy tomorrow, with economists divided on whether it will cut the official cash rate 25 basis points to 2.25% or keep rates on hold.

Air New Zealand (AIR): CEO Rob Fyfe wants the government to subsidise marginal international routes as tourist numbers are knocked by the economic downturn, according to Fairfax. Fyfe told an air transport conference that the airline was in a "process" with the government over incentives to maintain routes where demand was falling, according to the report. The airline’s shares were unchanged at $1.03 yesterday.

Auckland International Airport (AIA): Chief executive Simon Moutter said the airport has joined two marketing campaigns, promoting New Zealand tourism - one in India with Malaysia Airlines, and another with Emirates and a winter holiday package wholesaler promoting ski holidays into New Zealand. The shares fell 2 cents to $1.59.

Contact Energy (CEN): The biggest utility on the NZX 50 fell 0.7% to $5.63 yesterday, its second daily decline since announcing yesterday that underlying earnings would fall 30% to 33% this year on weak wholesale power prices.

ING Property Trust (ING): The trust’s units fell 1.8% to 56 cents amid a sell-off in property trusts as bond yields rose, damping the appeal of the yield available on real estate trusts. The yield on the 10-year government bond was at 5.98% yesterday from as low as 4.25% in late January. AMP NZ Office Trust (APT) fell 1.3% to 74 cents.

OceanaGold Corp. (OGC): The operator of the Macraes gold mine, New Zealand’s largest, has enjoyed prices in New Zealand dollars exceeding $1,900 an ounce in the first quarter while “supply/demand fundamentals continue to be promisingly bullish,” chairman Jim Askew told shareholders at their annual meeting yesterday. “It is truly a “golden time” to be a significant gold producer, Askew said, adding that the miner is now in a much stronger position than it was last year, when costs rose and its shares tumbled. OceanaGold fell 4% to $1.68 yesterday and has soared about 520% this year.

Restaurant Brands NZ (RBD): The fast-food franchise operator will enter the NZX 50 Index effective July 1 following the latest review by the NZX. It will replace Tourism Holdings, the campervan operator whose shares have fallen 27% this year and were at 49 cents yesterday. Restaurant Brands fell 2% to 97 cents yesterday.

Businesswire.co.nz

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