Stocks to watch: EWC, LMP, NZO, Wrightson

Tuesday 29th December 2009

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

Themes of the day: Shares weakened on Wall Street, paced by airlines, after a Nigerian man attempted to blow up a Northwest Airlines plane on Christmas Day. Crude oil rose to a five-week high as the greenback weakened.

Energy World Corp. (NZX: EWC ): The LNG systems developer said it stands to benefit from Indonesia’s efforts to increase electricity supply in a country where companies faced blackouts this month. The Sydney-based company cited a report in the Jakarta Post that Indonesia’s state power utility is to receive a zero interest loan to help address the shortages. The shares trade infrequently on the NZX and were last at 56 cents on Nov. 11.

L&M Petroleum Ltd. (NZX: LMP ): The coal-seam gas developer will acquire L&M Coal Seam Gas, with the enlarged company to be called L&M Energy. LMP will acquire 100% of the shares of LMCSG for 444 million shares and 56 million options. Directors Geoff Loudon and Greg Hogan have excused themselves from board discussions. The shares fell 0.6% to 16.9 cents on Dec. 24.

New Zealand Oil & Gas (NZX: NZO ): Crude oil rose to a five-week high in New York. Crude for February delivery rose 0.8% to US$78.70 a barrel on the New York Mercantile Exchange. The shares were unchanged at $1.66 on Dec. 24.

OceanaGold Corp. (NZX: OGC ): Gold futures ended its New York session higher, reflecting expectations that the U.S. dollar will decline, stoking the appeal of the precious metal as an alternative investment. Gold for February delivery edged up 0.3%, to US$1,107.90 an ounce on the New York Mercantile Exchange. Shares of the operator of the Macraes gold project fell 1 cent to $2.14 on Dec. 24.

PGG Wrightson (NZX: PGW ): The rural services group’s finance unit plans to issue deposits that are non-guaranteed, or excluded securities. The move to the new non-bank-deposit-taker framework will “provide much higher levels of transparency, surety and comfort for investors,” said Wrightson Finance chief Mark Darrow. The company repaid $200 million owed to its banking syndicate after completing its rights issue. The shares rose 3.5% to 60 cents on Dec. 24.

Businesswire.co.nz

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