Stocks to watch: Pyne Gould, SkyCity, NZX

Monday 1st November 2010

Pyne Gould considers liquidating residue assets if its finance unit Marac joins the proposed South Island bank and SkyCity chairman Rod McGeoch claims gaming regulations are preventing high net worth customers visiting New Zealand from Asia

Argosy Property Trust (ARG): ANZ National Bank said on Friday it received offers for the management contracts for Vital Healthcare Property Trust and Argosy Property Management, its exchange-traded investment units. Vital and Argosy made separate, identical statements to the NZX about the expressions of interest, giving no details. Argosy units were unchanged on Friday at 78 cents.

DNZ Property Fund (DNZ): The property investor said it has unconditionally sold its Jackson Street property in Petone for $13.6 million, and a vacant property on Bush Road in Albany for $7.1 million, after receiving unsolicited offers on both. The settlement dates are Feb. 25 and July 31 respectively. The proceeds of the sale will be used to pay off bank debt. Shares were unchanged on Friday at $1.18.

NZX (NZX): The takeover offer by the Singapore Exchange for Australia’s ASX is still in the early stages and likely to face a number of challenges before it becomes reality, according to Aegis Equities Research’s David Walker, quoted on the ShareChat website. This opens some breathing for New Zealand’s securities market operator, which risks being marginalised if the $10.9 billion part cash, part scrip deal goes through. The bid represents a 37.3% premium to ASX's pre-bid share price. NZX shares were unchanged on Friday at $1.58.

Pyne Gould (PGC): The financial services company and major partner in the proposed South Island bank said it is considering liquidating its residue assets should its finance unit, Marac, merge with Canterbury Building Society and Southern Cross Building Society. Other options on the table for PGC are continuing as a holding company with 71% of the merged entity, or occupying a middle ground between the two extremes. Shares rose 2.3% on Friday to 44 cents, and have dropped 13% this year.

SkyCity (SKC): Chairman Rod McGeoch told shareholders at the company’s AGM last week that tight regulations in the gaming business are stopping high net worth customers from Asia visiting New Zealand. By comparison, SkyCity's chief Australian competitor turned over $40 billion annually from its VIP play each year, he said. Shares rose 4.1% on Friday to $3.02.

Vital Healthcare Property Trust (VHP): ANZ National Bank said it received offers for the management contracts for Vital Healthcare Property Trust and Argosy Property Management, its exchange-traded investment units. Vital and Argosy made separate, identical statements to the NZX about the expressions of interest, giving no details. Units of Vital rose 0.8% on Friday to $1.35.

Themes of the day: The New Zealand dollar rose to a 27-month high ahead of the US Federal Reserve’s announcement on a second round of quantitative easing. Investors have pared back their forecasts for a rate hike by the Reserve Bank of Australia tomorrow. US midterm elections take place this week, in which Democrats are expected to lose their hold on the House of Representatives. US non-farm payrolls report is due on Friday with economists polled by Reuters forecasting a gain of 60,000 jobs in October. In September, the economy shed 95,000 jobs.

Businesswire.co.nz

Comments from our readers

No comments yet