Thursday 3rd September 2009 |
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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 weakened after minutes of the Federal Reserve’s last policy meeting showed officials saw “considerable uncertainty” in the economic recovery, figures showed companies cut more jobs than expected last month and factory orders rose less than predicted. The kiwi dollar extended its decline, falling to 67.18 US cents.
NZ Farming Systems Uruguay (NZS): The South American dairy farm developer surged 12% to 46 cents yesterday after Singapore’s Olam International acquired 14% of the stock for 41 cents apiece, taking advantage of a share price that’s sunk from $1.60 a year ago. Helping underpin the shares, prices of milk powder jumped more than 24% in Fonterra Cooperative Group's latest online auction, the second monthly surge, fueling optimism global prices are reviving.
Life Pharmacy (LPL): Shareholders in the pharmacy chain operator approved the company’s plan to buy Pharmacybrands for $20 million. Life Pharmacy expects to make a formal offer “very shortly”. Shareholders also agreed to the company buying back some 4.2 million of partly paid shares. The stock, which trades infrequently, fell 3.6% to 53 cents in trading yesterday.
New Zealand Oil & Gas (NZO): The oil producer and explorer has some acquisition opportunities “under active consideration,” chief executive David Salisbury told an oil conference in Freemantle, Western Australia. The company was holding $175 million in cash at June 30 and no debt. The shares fell 1.2% to $1.60 yesterday.
Smiths City Group (SCY): The Christchurch-based retailer sees signs of a pick-up in retail activity, chairman Craig Boyce told shareholders at the annual meeting yesterday. Annual profit should exceed last year’s $1.02 million as sales gain, he said. The shares last traded at 33 cents.
Telecom (TEL): The largest-listed company has signed Fonterra Cooperative Group, the world’s biggest dairy exporter, to a three-year mobile contract, the Dominion Post reported. The deal is one of the nation’s largest contracts, and will provide dairy farmers with 3,500 mobile connections on Telecom’s new XT network. Chief executive Paul Reynolds told analysts the company is bringing on a number of blue-chip customers to its new network. The shares climbed 1.5% to $2.73 on the NZX yesterday.
Tower (TWR): The insurer and fund manager was cut to ‘hold’ from ‘accumulate’ by Morningstar, according to the ShareChat website. Tower's competitive position remains weak in life and general insurance, while health has held up better. The shares fell 3 cents to $1.69 yesterday.
Businesswire.co.nz
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