Sharechat Logo

Stocks to watch: Michael Hill Xmas trading, Contact and Fletcher rally, NZX, OBV

Friday 8th January 2010

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: The first week's trading of the New Year has been characterised by typically light trading, with the main local drivers being mixed reports about the strength of Christmas retail sales, spiking lumber prices, and a cautious mood in offshore markets. European and US stockmarkets are in a holding pattern ahead of US job data, while China - one of the engines of the global economic recovery - raised interest rates yesterday to curb domestic credit growth.

Contact Energy (NZX: CEN ): Contact has started the year with a 3.5% rally over the first four days' trading, albeit on slender volumes. Contact is among brokers' picks for strong performance this year following a string of bad news in 2009 which led to the share being heavily discounted. CEN traded up to close at $6.32 yesterday. Rival listed power generator-retailer TrustPower (NZX: TPW ) has traded flat this week;

Fletcher Building Ltd (NZX: FBU ): The international construction materials manufacturer may continue its New Year rally today. The shares reached a nine week high yesterday, closing at $8.11. Soaring prices and tight supply of lumber, caused primarily by demand from China, is expected to raise prices for construction materials;

Michael Hill International Ltd (NZX: MHI ): The international jewellery chain reports a lift in Christmas trading of 4.4% on a "same store" basis across its New Zealand, Australian, and Canadian operations in preliminary results for the six months to December 31. However, Canadian sales were down 12.6%, offsetting 6.2% and 5.4% growth in Australia and New Zealand same stores sales respectively over the period. MHI last traded at 66 cents, having recovered somewhat from lows of around 60 cents in late November;

NZX Ltd (NZX: NZX ): The bourse operator may miss out on a new listing with Canterbury-based dairy group Synlait Milk Ltd. reported to be investigating alternatives to a public listing by The Press newspaper. Synlait’s planned $150 million initial public offering was put off because a lack of support, and managing director John Penno said the recent strength in the dairy sector opened new options to raise capital. Shares in the NZX sank 3.4% to $2.28 in trading yesterday, the day on which shares in another failed 2009 float, for the sugar substitute firm BioVittoria, was to have listed;

Oyster Bay Marlborough Vineyards Ltd (NZX: OBV ): Oyster Bay Sauvignon Blanc was the top-selling wine at Britain’s Majestic Wine chain store over the Christmas period, The Independent newspaper reported. The shares, which trade infrequently, last traded at $2.30 on Christmas Eve, and have sunk some 12% in the past year.

  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:

MARKET CLOSE: Mainfreight shares rise in weak market
MARKET CLOSE: Telecom powers ahead
MARKET CLOSE: NZX stars on the market
MARKET CLOSE: NZX lifts nearly 10pts, despite post-Budget slip
MARKET CLOSE: NZX lifts again in quiet day
MARKET CLOSE: NZX closes up but off best levels
MARKET CLOSE: Sharemarket bounces unconvincingly
MARKET CLOSE: NZX finishes down again
MARKET CLOSE: Tower shares slip as quake impact hits home
Market Close: Shares ease ahead of OCR call