Stocks to watch: Metlifecare home approved, FPA finance

Wednesday 11th March 2009

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

Themes of the day: Stocks soared on Wall Street after Citigroup said it had traded profitably in the first two months of the year. The US dollar weakened against most major currencies.

Fisher & Paykel Appliances (FPA): The whiteware manufacturer is set to announce details of its capital raising plan, including the identity of a new cornerstone investor, the NZ Herald reports. The company became the subject of speculation it would receive a government bail-out after posting a slump in fourth quarter sales. Its stock slid 3.8% to 51 cents yesterday.

Metlifecare (MET): The retirement home operator has announced the first stage of its Takapuna development will be completed ahead of schedule in June this year. The board has approved the commencement of the second stage, which is due for completion mid-2010. Its shares trade infrequently, and are currently at $1.59, having slumped almost 70% in the last 12 months.

New Zealand Oil & Gas (NZO): The gas and oil explorer was yesterday's biggest gainer on the exchange, rising 4.4% to $1.41. Crude oil rose yesterday on speculation a US Energy Department report this week will show US stockpiles are shrinking, a sign that OPEC's production cuts may be helping to limit supplies. US crude-oil supplies fell by 500,000 barrels last week, according to a Bloomberg survey. Crude oil for April rose as much as 2.4% to US$48.18 a barrel on the New York Mercantile Exchange.

Southern Travel Holdings (STH): The travel agency's Walshe Group subsidiary signed a general sales agent contract with Etihad Airways, the national airline of the United Arab Emirates.

Telecom (TEL): Rising optimism in the financial sector may lift the country's largest listed company as the rally in global equity markets reaches New Zealand. A report to the chief executive of Citigroup indicates the bank is on track to record its strongest quarterly earnings since 2007. The telecommunications provider is tipped by offshore investors when making their portfolio allocations.

By Jonathan Underhill

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