Stocks to watch: Telecom, Jasons, F&P Appliances

Friday 3rd July 2009

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

Themes of the day: Shares tumbled on Wall Street and in Europe after jobless rates in both zones rose to 9.5%, eroding optimism that the end of recession could be near. Prices of metals fell and crude oil declined almost 4%. The New Zealand dollar dropped to below 63 US cents as a dimmer global outlook sapped demand for riskier, or higher yielding, assets. The European Central Bank kept interest rates at a record low of 1% as expected and President Jean-Claude Trichet said the region’s economy will resume growth in mid-2010.

Fisher & Paykel Appliances (FPA): The Accident Compensation Corp. yesterday disclosed it had become a substantial holder of the appliance manufacturer, with a 5.3% stake as a result of conversion and underwriting of its rights. The shares climbed 3% to 68 cents yesterday.

Jasons Travel Media (JTM): The travel publications company said it would match its 2009 profit in 2010, helped by acquisitions made last year and the launch of new products. “Although the market is currently down, Jasons is experiencing increased market share in core products,” the company said in its annual report. It is exploring expansion opportunities in the Australian market, the biggest travel market for New Zealand. The shares were unchanged at 75 cents yesterday.

New Zealand Oil & Gas (NZO): The oil and gas company was downgraded to ‘accumulate’ from ‘buy’ by Forsyth Barr analyst Andrew Harvey-Green, who said tits investments are currently "problematic," the ShareChat website reported. The company’s cash holdings didn’t hold as much appeal now that commodity prices had rallied and assets were no longer as cheap as they were, he said. "We fear that NZO may have missed an opportunity of a lifetime and expect investors to increasingly question how much longer NZO should sit on its cash,” he said. The shares were unchanged at $1.56 yesterday.

NZ Farming Systems Uruguay (NZS): Prices fell again in Fonterra Cooperative Group’s monthly online auction, stoking concern that dairy products are mired in an extended slump. Kelvin Wickham, managing director of Fonterra GlobalTrade, said milk powder prices has been “going sideways.” The shares fell 1 cent to 47 cents yesterday. PGG Wrightson (PGW): The nation’s biggest rural services company was unchanged at $1.07.

Telecom (TEL): The phone company’s broadband score rose 4% in the first quarter, according to a broadband quality survey commissioned by the Commerce Commission, matching the national average. The shares fell 7 cents to $2.66 yesterday.

Businesswire.co.nz

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