Stocks to watch: Air NZ, NZ Refining, Restaurant Brands

Wednesday 24th June 2009

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

Themes of the day: The US dollar weakened as Federal Reserve policymakers began their two-day meeting, amid speculation they will douse expectations that US interest rates could rise as soon as this year. In New Zealand, Westpac’s consumer confidence survey is due today, with current account figures out tomorrow and first-quarter gross domestic product on Friday.

Air New Zealand (AIR): The airline that competes with Qantas has offered cut-price fares to its rival’s budget carrier Jetstar. Air NZ is offering $50 fares to domestic Jetstar customers “who are denied check-in or significantly disrupted.” The offer comes after media reports that the new Jetstar service had strictly enforced 30 minute check-in times, turning ticket-holders away, while some of its flights didn’t run on time. Air NZ fell 1.1% to 91 cents yesterday.

Connexionz (CNX): Shareholders yesterday approved the company’s plan to enter into contracts to supply a real-time passenger information system for the Eastern Contra Costa Transit Authority in California. The value of the contracts is about $2.33 million, it said. The shares last traded unchanged on the NZAX market at 10 cents on June 16.

New Zealand Refining (NZR): The nation’s only oil refinery said in a briefing to analysts that it doesn’t see Shell New Zealand’s decision to sell its 17% stake as a threat to the company. It said performance in 2009 is “much better than we hoped.” While throughput is down on a year earlier it is slightly ahead of the company’s production plan. The shares fell 1.4% to $6.90 yesterday.

ProvencoCadmus (PVO): The eftpos systems company said it had agreement from its banks to extend its current facilities through until August 30. The extension will help give the company enough time for recapitlisation, it said. The shares fell 2.9% to 6.7 cents yesterday.

Rakon (RAK): The maker of components for navigation systems fell 4.5% to $1.48 yesterday, after director Peter Maire announced plans to sell more of his holding to fund other investments. Maire will sell 700,000 of the 11.4 million shares he holds, the company said, worth $1.04 million at yesterday’s price.

Restaurant Brands New Zealand (RBD): The fast-food operator signed a 10-year franchise agreement with Yum Brands for Pizza Hut, which allows the New Zealand company to sell down the outlets. As many as 10 stores could be sold in the first year, with the proceeds used to repay debt, it said. Changes in the pizza market, with increased rivalry, meant owner-operator stores were likely to prosper more than those in corporate ownership. The shares rose 1 cent to $1.01 yesterday and have climbed 35% in the past three months.

Businesswire.co.nz

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