Stocks to watch: AIR, ANZ, NWF, WHS, WEN

Thursday 29th April 2010

Air NZ confirms talks with Virgin Blue over alliance on Tasman routes and ANZ is in a trading halt on both the the NZX and ASX pending an announcement. NZ Windfarms secures $31.4 million as major shareholders underwrite the offer and Bollard keeps the OCR steady at 2.5%.

Air New Zealand (NZX: AIR ): The national carrier said yesterday that it is has been in talks for several months with Virgin Blue about a potential alliance on routes across the Tasman Sea. No agreement has been reached. The shares ended up unchanged yesterday at $1.37.

ANZ Banking Group (NZX: ANZ ): The company is in trading halt on both the NZX and ASX this morning, pending an announcement. The stock last traded in New Zealand yesterday at $31.95 a share.

New Zealand Oil & Gas (NZX: NZO ): The oil and gas explorer and producer is due to release its March quarter update this morning.

NZ Windfarms (NZX: NWF ): The windfarm operator jumped 8% to 27 cents yesterday after announcing it has secured the $31.4 million of equity funding it sought to complete the Te Rere Hau extension and to buy out owners of the site. The equity raising is being underwritten by major shareholders including Vector, which was unchanged at $2.15.

Warehouse Group (NZX: WHS ): The biggest retailer on the NZX 50 yesterday said its $100 million bond offer closed fully subscribed as investors flocked to the 7.37% interest rate. The debt will trade on the NZDX market on April 29. The stock fell 1.3% yesterday to $3.79.

Widespread Energy (NZX: WEN ): The investment and development group with prospecting rights for phosphate on the Chatham Rise said it raised $100,000 under a shortfall arrangement in its Share Purchase Plan. Sister company Widespread Portfolios (WID) was one of three investors who subscribed for the shares. The total raised this year is almost $800,000. WEN was at 14 cents yesterday and WID was unchanged at 18 cents.

Economic themes of the day: Reserve Bank Governor Alan Bollard softened the rhetoric around the timeline for interest rates to rise, keeping the Official Cash Rate steady at 2.5% and dropping reference to a mid-year increase in favour of a rise "in coming months" which was unlikely to be as great as previously indicated.

The New Zealand dollar fell to US71.72 cents after the announcement, from 72 cents immediately before the statement was released.

Offshore overnight, Spain joined both Greece and Portugal in the penalty box after Standard & Poor's cut the nation's credit rating, a move that triggered more pressure on European equities as well as the euro.

Businesswire.co.nz

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