Stocks to watch: Fletcher, Infratil, Wrightson, Spotless

Monday 18th January 2010

The following stocks may be active on the New Zealand exchange after developments since the close of trading yesterday. All prices are in New Zealand dollars unless specified.

Themes of the day: Figures this week may show New Zealand inflation was unchanged in the fourth quarter from the third quarter, reflecting a drop in food prices. A weak Consumer Price Index may convince the central bank to keep interest rates unchanged until at least April, according to a Reuters survey. The kiwi dollar eased back to 73.80 U.S. cents. Also due this week are retail sales for November and house prices for December.

Fletcher Building (NZX: FBU ): With New Zealand in only the early stages of economic recovery, sectors such as construction, among the most ‘pro-cyclical’, are likely to be among the best performers over the next couple of years, according to economists at Westpac. Shares of the nation’s biggest construction company were at $8.31 on Friday.

Infratil (NZX: IFT ): The investment group’s 66%-owned Wellington Airport unveiled a long-term strategic plan to invest $450 million in its airport services, doubling its capacity to some 10 million passengers. The airport posted its Master Plan for 2030 on its website, having flagged it in April. The shares were at $1.68 on Friday and have climbed about 3.5% this month.

NZX (NZX: NZX ): Broking house Forsyth Barr rates the exchange operator as ‘accumulate’ recommendation on the New Zealand stock and derivatives exchange operator, according to a report on the Sharechat website. Analyst Guy Hallwright raised his valuation based on long term value accretion from $2.28 to $2.37 a share. The shares traded at $8.31 on Friday.

PGG Wrightson (PGW): The nation’s biggest rural services company said it issued US$25 million of convertible redeemable notes to major shareholder Agria Corporation on Friday, as part of its capital raising announced in October. The proceeds will be invested as new capital into PGG Wrightson Finance “to enhance regulatory capital and provide greater liquidity and capacity for growth in that business,” Wrightson managing director Tim Miles said. The shares were at 65 cents on Friday.

Spotless Group (NZX: SPT ): Shares of the Australian commercial laundry and cleaning group begin trading today after the company acquired the remaining 34% of New Zealand’s Taylors Group for $2.25 a share last year. The company has a market value of A$736 million, based on its ASX-listed shares, which closed at A$2.85 on Friday.

Businesswire.co.nz

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