Sharechat Logo

Stocks to watch: New Zealand equity preview

Friday 25th July 2008

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

Themes of the day: US stocks dropped after figures showed home sales in the world's biggest economy fell to the lowest in a decade last month. Sales of previously owned homes fell 2.6% and the median price fell 6.1% from the same month last year. Lehman Brothers said the New Zealand dollar could fall 14% to about 64 US cents by year-end as the Reserve Bank cuts interest rates, Bloomberg News reported. The Kiwi is Lehman's most disliked currency, the report said.

Cavotec MSL Holdings (CCC): The maker of power supply systems said its order book jumped 8.7% to 44.4 million pounds sterling as at June 30 from a year earlier. The increase brings its order intake in the past 12 months to 135.7 million pounds, a 5.9% increase, the company said in its second-quarter report. It has "showed signs of continued resilience against current global economic trends," Cavotec said.

Fisher & Paykel Healthcare (FPH) and Fisher & Paykel Appliances: The New Zealand dollar tumbled yesterday after the central bank cut interest rates and indicated more reductions in borrowing costs are to come, helping lift sentiment for companies that derive revenue in US dollars. F&P Healthcare jumped 6.5% yesterday and the appliances company, which has relocated plants offshore to reduce the impact of a crippling high kiwi dollar, rose 5.5%. Bank of New Zealand currency strategist Danica Hampton said the kiwi may fall to 70 US cents by year end.

Fletcher Building (FBU): Sales of previously owned homes in the US, where the company's Formica laminates unit is based, fell to a 4.86 million annual pace in June, down from 4.99 in the previous month, according to the National Association of Realtors. The stock jumped 5.5% to NZ$6.91 yesterday, after the Reserve Bank of New Zealand cut interest rates.

Rakon (RAK): The maker of components for global positioning systems told the New Zealand Shareholders Association that volumes of positioning products are still strong and the company "maintains technology and market leadership." The stock jumped 6% to NZ$2.75 yesterday, trimming its decline in the past month to 13%.

Steel & Tube Holdings (STU): The maker of reinforcing steel used for construction gained 3.9% yesterday after the central bank cut interest rates and said more cuts are pending. Lower borrowing costs may help revive demand in the construction industry and stoke sales of the company's products. The shares have fallen 28% this year.

By Jonathan Underhill

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Contact Energy Limited (NZX: CEN) Considers Green Capital Bond Offer
Tourism Holdings Limited (NZX: THL) Sells Mighway and SHAREaCAMPER to Camplify
26th October 2021 Morning Report
Harmoney Corp Limited (NZX: HMY) Prices $105m Inaugural ABS Transaction
New Zealand Rural Land Company Limited (NZX: NZL) Agreement to acquire large scale dairy asset portfolio
EROAD Limited (NZX: ERD) launches Clarity Solo Dashcam
22nd October 2021 Morning Report
Pictor ready to roll out game-changing COVID antibody test in New Zealand
Scott Technology Limited (NZX: SCT) Announces FY21 Results
21st October 2021 Morning Report