Stocks to watch: Auckland Airport, NZO, Wrightson, Xero

Wednesday 27th January 2010

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

Themes of the day: Auckland International Airport’s shares were halted for a $126 million rights offer to fund its recent foray into Australia. The kiwi dollar held below US$71 million. Crude oil fell and gold edged higher. Investors locally are awaiting the release of the central bank’s review of monetary policy tomorrow, with the official cash rate seen staying at 2.5%.

Auckland International Airport (AIA): The nation’s busiest gateway today announced plans to raise $126 million through a fully underwritten pro rata entitlement offer. Shareholders can subscribe to one new share for every 16 shares held at $1.65 apiece. The funds will help finance the acquisition of about a quarter of Cairns and Mackay airports. The shares, halted for the offer, rose 5 cents to $1.92 yesterday.

New Zealand Oil & Gas (NZO): Crude oil fell to a five-week low as the greenback gained and amid concern China’s efforts to cool its economy will soften demand for fuel. Crude oil for March delivery fell 0.8% to US$74.69 a barrel on the New York Mercantile Exchange. The shares fell 1 cent to $1.57 yesterday.

OceanaGold Corp. (OGC): Gold rose in New York amid expectations it will extend last year’s rally, which pushed the price to a record US$1,227.50 last month. Gold futures for April delivery rose 0.4% to US$1,101.60 in New York. The shares jumped 4% to $2.60 yesterday.

PGG Wrightson (PGW): the rural services company is rated ‘outperform’ by First NZ Capital analyst Kar Yue Yeo, according to the ShareChat website. "The recent improvement in business outlook among farmers should translate to higher farm spending (even if moderately) and deliver some benefit” to the company, he said. The shares were unchanged at 63 cents yesterday.

Sealegs Corp. (SLG): The amphibious boat manufacturer is headed for a marketing drive in the U.S., attending a series of boat shows with partner All Action Water Sports. “The American boating season is approaching and Sealegs is in a better position than ever to take advantage of it,” said chief executive David McKee Wright. The shares last traded at 22 cents on Jan. 25.

Xero (XRO): The online accounting software company said it signed an agreement with U.S. based Yodlee Inc., which develops online and mobile personal finance management and payments systems. The U.S. firm’s Software Development Kit will be used to extend Xero’s automated daily bank account feeds, it said. The stock was unchanged at $1.57 yesterday.

Businesswire.co.nz

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