Stocks to watch: Property trusts and Dorchester attract attention

Thursday 24th June 2010

Figures on New Zealand's economic growth out today will be watched by the market to see if things are slowing down. Two property trusts feature in the news for different reasons with the manager of one looking to sell its management contract. Also there is a further update on crude oil prices.

Themes of the day: Figures today are expected to show the pace of economic growth slowed to 0.6% in the first quarter, from 0.8% in the final three months of 2009. The slower pace of growth isn’t expected to deter the central bank from continuing on its tightening cycle, with the economy now in its fourth quarter of expansion after the deepest recession in 18 years.

Shares on Wall Street ended the session little changed after the Federal Reserve noted a faltering pace of growth in the world’s largest economy. The kiwi dollar rose to 71.28 US cent from 70.85 cents yesterday as the fed’s comments sapped demand for the greenback.

Dorchester Pacific (NZX: DPC ): Its finance company is facing receivership if it can’t convince debenture holders to accept a complex asset swap. The company is offering securities that trade on the NZX and the Unlisted platform as part of the deal to keep the business afloat. The firm has an investor roadshow underway to promote the proposal. The shares climbed 7.5% to 8.6 cents yesterday.

Kiwi Income Property Trust (NZX: KIP ): The commercial property investor rose 1.1% to 92 cents yesterday after saying it will buy back up to 20 million of its units in the next 12 months to underpin its price.

National Property Trust (NZX: NAP ): The trust’s manager, which is owned by St Laurence, said yesterday it has been developing a proposal under which it will relinquish management rights held for a payment of $2.5 million and sell back its holding in the property investor. The trust’s units were unchanged at 52 cents yesterday.

New Zealand Oil & Gas (NZX: NZO ): Crude oil fell for a second day in New York after the American Petroleum Institute reported that US inventories rose by 3.69 million barrels last week, the second straight weekly gain. New York crude fell as much as 1% to US$77.04 a barrel on the New York Mercantile Exchange. The shares fell 2 cents to $1.30 yesterday.

Pacific Edge (NZX: PEB ): The biotech company yesterday announced it had gained a New Zealand patent for its colorectal cancer prognostic technology. The shares rose 4.4% to 24 cents yesterday.

Businesswire.co.nz

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