Stocks to watch: FPA bank facility talks, Air NZ flu fears

Tuesday 28th April 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 on Wall Street edged lower as fears on a swine flu epidemic weighed on hotel and airline shares. Crude oil and copper prices eased as investors weighed the potential economic impact. General Motors shares soared as it put together its final attempt to win over bondholders for a debt to equity swap and announced 21,000 jobs would be cut.

Air New Zealand (AIR): The death toll from swine flu in Mexico has risen to at least 100 and cases have been detected in Spain and Canada, as well as New Zealand. The stock dropped 2.7% to $1.08 yesterday amid concern the outbreak of swine flu will deter people from travelling.

“If it is prolonged, it may inhibit people in wanting to travel on an airline,” said Alan Moore, who helps manage $250 million at Milford Asset Management.

Fisher & Paykel Appliances (FPA): The shares fell 2.2% to 44 cents yesterday. The manufacturer is in talks with its banks to refinance $80 million in a short-term facility that comes due on April 30.

Lion Nathan (LNN): The Australian brewer’s shares jumped 38% to $14.60 in New Zealand yesterday after Kirin Holdings agreed terms for a takeover of the company. The ASX-listed stocks soared about 40% to A$11.63, shy of the A$12.22 a share offered by Kirin for the remaining shares. The offer includes a 72 cents-a-share fully-franked dividend, credits that New Zealand investors can’t access.

NZX (NZX): The stock exchange operator said it is finalizing an agreement to acquire Country-Wide Publications, which publishes NZ Farmers Weekly, Country-Wide North and Country-Wide South, NZ Dairy Exporter, Deer Farmer and Young Country. The acquisition would add to NZX’s rural portfolio after it bought the Agri-Fax business and acquired publications and data sources in Australia. No price was disclosed. The shares rose 15 cents to $6.75 yesterday.

Postie Plus Group (PPG): The clothing retailer said it is on track to meet its profit improvement targets with the traditionally stronger second half. A modest full-year profit is expected. The retailer had a first-half net loss of $2.68 million as sales fell 5% to $49.9 million. The stock traded yesterday at 30 cents.

Tourism Holdings (THL): The campervan rental company’s shares have declined 32% so far this year and may dip further should the swine flu outbreak deter tourists from travelling. The shares were unchanged at 45 cents yesterday.

Businesswire.co.nz

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