Sharechat Logo

Stocks to watch: New Zealand equity preview

Thursday 31st July 2008

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

Themes of the day: The Court of Appeal allowed an appeal by the Commerce Commission preventing Woolworths Ltd. and Foodstuffs from bidding for Warehouse Group. Australian retail sales growth may have stalled in June, another sign that high borrowing costs are slowing the economy of New Zealand's biggest export market. The figures are due out today. Crude oil for September delivery rose almost 1% to US$123.25 a barrel after U.S. gasoline inventories fell.

Contact Energy (CEN): Origin Energy, Contact's parent, may get an alternative proposal for its coal-seam gas assets in September, prompting BG Group Plc to raise its A$13.8 billion offer for the energy company, Bloomberg News reported, citing Credit Suisse. Contact rose 1.8% to NZ$8.35 yesterday.

Restaurant Brands NZ (RBD): Starbucks Corp. of the US yesterday posted a third-quarter loss because of costs to close 600 outlets and cut workers. The Starbucks franchise in New Zealand is a "relatively small" contributor to earnings at Restaurant Brands and the company expects sales growth to continue, it said last month. The stock has declined about 8% in the past month.

Tourism Holdings (THL): Tourist numbers may reach lowest level in 10 years this year, according to Ministry of Tourism forecasts. Visitor numbers will rise 1.2% this year, it said. The tourist operator has sold assets and last month said net income probably was little changed from a year earlier at NZ$13 million to NZ$14 million. The stock has declined 44% in the past year and was last at NZ$1.40.

Warehouse Group (WHS): The Court of Appeal today ruled in favour of the Commerce Commission by allowing its appeal against a lower court ruling allowing Woolworths and Foodstuffs to bid for Warehouse. The rival supermarket chains are prevented from making bids and were ordered to pay costs to the regulator, according to a decision today.
Each now owns 10% of the company. Warehouse has fallen 7% in the past month after cutting its profit forecast because of a slump in consumer demand.

By Jonathan Underhill



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Geneva Finance Limited (NZX: GFL) Half Year Results
The New Zealand Refining Company Limited (NZX: NZR) NZ announces equity raising
Asset Plus Limited (NZX: APL) Result for the six months ended 30 September 2021
Me Today Limited (NZX: MEE) 30 September 21 Results and Conditional Placement
Oceania Healthcare Limited (NZX: OCA) Delivers Improved Performance Despite COVID-19
29th November 2021 Morning Report
Radius Residential Care Limited (NZX: RAD) Announces Half Year Results of FY22
NZ Automotive Investments Limited (NZX: NZA) Interim Results for Half Year 2022
Greenfern Industries Limited (NZX: GFI) Releases Interim Results
Hallenstein Glasson Holdings Limited (NZX: HLG) Announcement of Final Dividend