Stocks to watch: New Zealand equity preview

Wednesday 9th July 2008

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

Themes of the day: US stocks gained as the price of crude oil extended its slide. Fannie Mae and Freddie Mac, the biggest US mortgage finance companies, rebounded from 13-year lows after a regulator said the mortgage-finance companies shouldn't have to need to raise more capital. At home, economists are predicting inflation will peak at more than the central bank has forecast as companies raise prices to make up for soaring costs of raw material.

AFFCO Holdings (AFF): The meat processor�s 44% owned Dairy Trust yesterday announced a deal with Singapore-based agricultural products distributor Olam International to build a nationwide milk processor capable of challenging Fonterra.

Cavotec MSL Holding (CCC): Shares of the developer of ship tethering systems rose 5.7% yesterday after the company said it won an order to supply 12 of its MoorMaster automated mooring units for the APM Terminals container facility at the Port of Salalah in Oman.

New Zealand Refining Ltd (NZR): New Zealand�s only oil refiner fell 3 cents to NZ$6.97 yesterday. The price of crude oil has extended its slide in New York trading yesterday.

Telecom Corp (TEL): New Zealand�s largest phone company yesterday said its sale of 200 million Swiss francs of bonds was fully subscribed and that investors were attracted to the company�s strong cash flows. The stock rose to NZ$3.47 yesterday.

By Jonathan Underhill

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