Stocks to watch: AIR, APN, EWC, FBU, PPG, SPY

Thursday 29th September 2011

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

Themes of the day:

With no data on the local front, the New Zealand share market may again take its lead from offshore markets, with the mood marked by nervous trading as investors stick to the sidelines awaiting further details on Greece and a bid to boost the euro zone bailout fund.

On Wall Street, the Standard & Poor's 500 Index fell 0.6% and Europe's Stoxx 600 Index fell 1.1%. Commodity prices fell 2.5% to 303.58 as measured by the Thompson Reuters Jefferies CRB Index.

Air New Zealand Ltd. (AIR): The national carrier's chief executive Rob Fyfe said the airline is expected to earn an additional $30 million from the Rugby World Cup, with overseas demand still increasing as the tournament continues, according to a Fairfax Media report. That's down on $40 million windfall originally forecast from the event. AIR shares were unchanged yesterday at $1.09.

APN News & Media Ltd. (APN): The media company which lost its NZX 50 status is predicting a cautious recovery in advertising demand leading up to Christmas and into next year, according to a report by The Australian. APN last month reported a $98 million loss for the six months to June 30, compared with a $40m profit for the same period last year. APN shares were unchanged yesterday at $1.05.

Energy World Corporation Ltd. (EWC): The electricity and gas company said it will officially delist from the NZX on Oct. 12 in a bid to reduce its compliance costs. The company said the move is appropriate given that its New Zealand shareholders hold approximately 0.001% of EWC’s total issued capital. The last day of trading will be Oct. 7. EWC were unchanged yesterday at 63 cents.

Fletcher Building Ltd. (FBU): The country's biggest building company announced it had secured A$180 million in contracts to supply pipelines for the Queensland coal seam gas market through its Iplex subsidiary, including the Curtis Island LNG project, according to the Sydney Morning Herald. Fletcher acquired Iplex through its Crane Group acquisition earlier this year. FBU shares fell 0.3% yesterday to $7.55.

Postie Plus Group (PPG): The clothing retailer rose 8.1% yesterday to 20 cents after it boosted net profit 58% as it grabbed more market share despite weak demand from households. Net profit was $656,000 in the 12 months ended July 31, up from $415,000 a year earlier. Revenue rose 1.7% to $115.7 million.

SmartPay Ltd. (SPY): The Eftpos company and Infratil Ltd. subsidiary Snapper have entered into a partnership which will see the companies rollout the contactless payment system across New Zealand’s biggest Eftpos network. The deal will extend the current working partnership in a bid to capture a bigger slice of the small transactions, specifically in the transport, general retail and hospitality markets. SPY shares rose 14% yesterday to 16 cents.

BusinessDesk.co.nz

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