Stocks to watch: Norgate's funding, Fletcher Building

Wednesday 18th March 2009

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

Themes of the day: Shares advanced in the US and oil gained after figures showed housing stats rose, buoying optimism the property market is through its worst stretch.

Fletcher Building (FBU): US housing starts unexpectedly rose last month, halting the longest slide in 18 years, raising optimism the property slump may be showing signs of reviving. Fletcher, which owns the US-based Formica laminates business, rose 2.7% to $5.70 yesterday.

NZ Farming Systems Uruguay (NZS): The company has been among the biggest gainers on the NZX 50 in the past two days after gaining an investment grade credit rating to raise funds in Uruguay, allowing it to fund more dairy conversions after being thwarted in its fund raising last year. The shares climbed 5.3% to 60 cents yesterday.

Nuplex Industries (NPX): NZX Regulation said a trading halt on the stock and rolling instalment warrants has been extended to allow the specialty chemicals maker to finalise its capital raising. The shares were at $1.07 before being halted.

Opus International Consultants (OIC): The infrastructure consultancy group is shedding 75 staff in the UK as it seeks to strengthen its business and benefit from any improvement in the current economic climate. Its UK operation recorded a pre-tax loss of $5.4 million last year. Its stock climbed 8.2% $1.19 in light trading yesterday.

PGG Wrightson (PGW): Rural Portfolio Investments, the investment vehicle of PGG's chairman Craig Norgate, is finalising funding to cover a payment to investors, and has decided against opting out of a new redeemable preference share issue to cover it, the NZ Herald reports. The investment vehicle owns 30% of the rural supplier, and holds $102.5 million in these shares. Its stock rose 6% to $1.06 yesterday.

By Jonathan Underhill

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