Stocks to watch: F&P Appliances, ING Property, TEL

Stocks to watch: F&P Appliances, ING Property, Millennium, Telecom

Sept. 28 (BusinessWire) – The following stocks may be active on the New Zealand exchange after developments since the close of trading yesterday. All prices are in New Zealand dollars unless specified.

Themes of the day: Stocks slipped on Wall Street on Friday after weaker-than-expected housing and durable goods orders data. The release of the National Bank Business Outlook this week will show whether the sharp rebound evidenced in the last survey has been sustained. U.S. second-quarter economic growth figures are released this week while some investors are questioning the rally in global stock markets since March, which has pushed valuations higher.

F&P Appliances (FPA): Shares of the manufacturer sank 12% to 65 cents on Friday after it said depressed trading conditions in the U.S. meant competition for sales of home appliances was been more intense than expected. It is now forecasting a full-year loss of $2 million to $5 million, from a prospectus estimate of $11.7 million profit.

Heritage Gold NZ Ltd. (HGD): The mining company said it is concerned at the lack of overseas interest in local projects as it continues to seek a partner for its Talisman Mine project. "Our concern has been the reluctance of overseas groups to consider New Zealand as a mining and resource friendly environment,” chairman Geoffrey Hill told shareholders at their annual meeting. The shares last traded at 2.3 cents and have fallen about 23% this year.

Infratil Ltd. (IFT): The investment group is readying to acquire electricity assets in New South Wales though it hasn’t committed to such a move yet, it said in its investor update. The government of Australia’s most-populous state is selling three power retail units though it plans to regulate prices for the next four years. The shares fell 1 cent to $1.70 on Friday.

ING Property Trust (ING): Australia & New Zealand Banking Group on Friday said it mopped up the remaining 51% of ING Australia and ING NZ for A$1.76 billion, including its holdings in listed property trusts. The shares were unchanged at 81 cents on Friday. ING Medical Properties (IMP) rose 0.9% to $1.17.

Millennium & Copthorne Hotels New Zealand Ltd. (MCK): “As in 2008, the board is conscious that market and trading conditions remain challenging and will
remain so in the near term,” chairman Wong Hong Ren said in the company’s first-half report. Operating profit after tax and minorities fell to $5.38 million in the first half from $13.29 million a year earlier.

Telecom Corp. (TEL): The Commerce Commission said on Friday that it will investigate whether to remove or amend regulation of the company’s retail services to wholesale customers. The final decision on whether to scale back regulation is at the discretion of the Communications Minister. Earlier this year, Telecom requested the commission revisit the regulation, which it claims was surpassed by the enforced operational separation in 2006.

Zintel Group Ltd. (ZIN): The business communications company is looking to sign a wholesale access agreement with one of the three mobile network companies, chairman Nick Gordon said. The shares rose 1 cent to 35 cents on Friday.

(BusinessWire)

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