Stocks to watch: New Zealand equity preview

Tuesday 26th August 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 had the biggest decline in two weeks amid speculation insurer American International Group will report a loss amid credit writedowns. Contact Energy posted a 1% decline in annual profit.

Air New Zealand (AIR): The national carrier today reported net profit fell 1% to NZ$218 million, amid high fuel costs. The stock has tumbled 35% this year, lagging behind the NZX 50 Index, amid rising fuel prices and rivalry on key routes across the Tasman Sea.

Auckland International Airport (AIA): Taiwanese airliner EVA Air will end its twice-a-week flights between Taipei and Auckland after 14 years, citing high fuel prices. The airport company yesterday said international passenger volumes fell 0.3% in July from the same month last year. Its stock was unchanged at NZ$2.01 yesterday.

Contact Energy (CEN): The biggest utility on the NZX 50 Index today said full-year profit fell 1% to NZ$237 million as constraints on the Cook Strait cable forced the company to buy power on the spot market to supply South Island customers. The stock fell 1.3% to $8.31 yesterday.

ING Property Trust (ING): The nation's fourth-largest property investor said its units are "inappropriately discounted" after slumping almost 28% this year, and rising rents will help make up for any decline in property values. ING units fell 1.3% to a record low 76 cents yesterday.

New Zealand Oil & Gas (NZO): Crude for October delivery rose 0.5% to $115.11 a barrel on the New York Mercantile Exchange. Crude oil has gained 62% in the past 12 months.

OceanaGold Corp. (OGC): Gold futures for December delivery fell 0.9% to $825.70 an ounce on the New York Mercantile Exchange amid concern its 5% rally last week was overdone. Silver also declined.

By Jonathan Underhill

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