Stocks to watch: AIR, KMD, NZS, PLU, RBD, SAN, SKC

Jan. 27 (BusinessDesk) – The following stocks may be active on the New Zealand exchange after developments since the close of trading. All prices are in New Zealand dollars unless specified.

Themes of the day: The Reserve Bank held the official cash rate at 3%, and isn’t planning to raise rates until the economic recovery is “more robust". Markets had broadly expected the bank to keep interest rates on hold, with softer inflation and retail sales data undermining any prospects of a prompt rise in the short-term. The U.S. Federal Reserve said it will draw down the $600 billion in Treasuries and kept interest rate in a near-zero band to support the world's biggest economy at its Federal Open Market Committee meeting in New York. The news help stoke appetite for higher yielding or riskier assets with the Standard & Poor's 500 Index gaining 0.5% to 1297.97 in late afternoon trade, while the in Europe the Stoxx 600 closed 0.9% higher at 282.47.

Air New Zealand Ltd. (AIR): Air New Zealand, the national carrier, fell 1.4% yesterday to $1.43, after Prime Minster John Key said the government wants to partially list state owned enterprises on the NZX while still maintaining a majority stake and is reviewing its ownership of the airline. Air NZ said the move would have no influence on its operations but would provide greater liquidity for shareholders. Government currently holds a 76.5% stake in Air New Zealand.

Kathmandu Holdings (KMD): The outdoor clothing retailer is rated as "buy" according to Goldman Sachs & Partners analyst Buffy Gill, quoted on the ShareChat website. Last week the company reported sales in the six months ending January 31 will be up between 16% and 18% to between $124 million and $126 million. Gill said the interim results bolstered confidence in Kathmandu's business model following a disappointing full-year 2010 result, which she attributes to a poor inventory position which has now been repaired. Shares were unchanged yesterday at $2.16.

NZ Farming Systems Uruguay (NZS): The South American dairy farm developer, which is 78% owned by Singapore-based Olam International, named David Beca as its new managing director. Beca, who takes over from Alastair de Raadt, will be based in Uruguay. He was recently managing director of Red Sky Agricultural, which provides farm business analysis software, benchmarks and business advice. The shares were last at 55 cents on Jan. 24.

Pulse Utilities Ltd. (PLU): The smart meter developer and electricity retailer said yesterday that it has signed up more than 20,000 customers across New Zealand. Pulse raised $4.25 million in private placements to 18 investors late last year, is on target to secure its goal of 60,000 customers by March 2013, it said. Its investors include prominent racehorse owner Robert Famularo, CallPlus founder Malcolm Dick and Buller Electricity Ltd. The shares last traded on Dec. 30 at 43 cents.

Restaurant Brands NZ Ltd. (RBD): the NZX yesterday asked the fast food franchise operator to explain why its share price had declined over 10% since Jan. 10. The company was the second best performing stock on the exchange last year, having gain 64% in 12-months to peak at $2.68 at the end of last year. Restaurant Brands did not give an explicit explanation for the fall, and said it “continues to comply with its continuous disclosure obligations”. Shares fell 0.4% yesterday to $2.43.

Sanford Ltd. (SAN): The fisheries company said its plans team up with rival Sealord to tap government funding for research and development into lifting the value of New Zealand mussel exports. Shares rose 3.2% yesterday to $4.90.

SkyCity Entertainment Group (SKC): The casino and hotel operator fell 0.3% yesterday to $3.22 after Christchurch Casino said punter numbers had dropped in the wake of the Canterbury earthquake in September. SkyCity owns a 50% stake in the South Island’s biggest gaming venue.

(BusinessDesk)

BUDGET 2012:
Parliament Debate Live - Video Of Budget 2011
Keith Ng Interactive Graphic: How the Budget Breaks Down
BUDGET 2012 - FULL COVERAGE: Reports / Analysis - Press Kit - Reaction (from everybody) - Previews (from everybody) - Pre-Budget Announcements

Gordon Campbell: On the Budget’s Spreadsheet Victories

It wasn’t as if expectations were sky high, exactly. Chances are, it was always more likely that we’d be seeing Bigfoot rampage through the Beehive lock-up than catch a glimpse of a credible growth agenda from this government. More >>

Sludge Budget Report - Short The Dollar! MEMO: To international bankers FROM: C.D. Sludge Please short the dollar! It'll be good for both you and us. And you know you want to. Greexit, Eurogeddon... watch out... flight to quality and all that. Follow your instincts. The NZ Debt Management Office has been so surprised at the unprecedentedly low interest rates that it can borrow at that it has already entirely pre-funded the 2013 fiscal deficit - all $8 billion of it! More >>

Pattrick Smellie Comment: Doddling along the best we can hope forCriticising Budgets for lacking vision or imagination is like shooting fish in a barrel, but even so, this year's Budget again feels like a missed opportunity. Perhaps it's the intrusion of real world needs that means the government couldn't make better political use of the $558.8 million it expects to gather in its first partial asset sale. More >>