Stocks to watch: ALF, ARG, CCC, RBD, TEL, TLS, TWR

Stocks to watch: ALF, ARG, CCC, RBD, TEL, TLS, TWR

June 24 (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:

With no local data expected today, the market will be looking offshore for leads. Global equities fell after European officials said banks remain dangerously exposed to a Greek default through their debt holdings. On Wall Street, the Standard & Poor's 500 Index fell 0.3% to 1,283.5, while Europe's Stoxx 600 dropped 1.4% to 264.31.

Sentiment was also hurt by a slide in commodity prices, lead by oil after the International Energy Agency said it would tap emergency supplies. The Thompson Reuters Jefferies CRB Index, a measure of 19 hard and soft commodities, fell 2.3% to 330.21, a five month low.

Allied Farmers Ltd. (ALF): The rural services firm which failed to transform itself into a major lender says it will not lose $10 million on a loan for a resort project in Fiji, calling the claims 'inaccurate' after a report in the New Zealand Herald newspaper. That comes after ANZ Bank Fiji appointed receivers and managers to Vatulele Joint Venture Trustee, guarantor of a loan made by Allied to the Waterfront Fund. ALF shares were unchanged yesterday at 1 cent.

Argosy Property Trust (ARG): OnePath NZ Ltd. has backed off its proposals to internalise Argosy's management contract. The fund manager wanted $32.5 million from Argosy Property Trust, and $14 million from sister fund Vital Healthcare Property Trust. ARG shares were unchanged yesterday at 81 cents.

Cavotec MSL Holdings (CCC): The global engineering group and owner of Christchurch-based MoorMaster has won a multi-million euro order to supply 24 of its MoorMaster units designed for handling containers ships to a Mediterranean sea port. CCC shares rose 1.8% yesterday to $2.85.

Restaurant Brands NZ Ltd. (RBD): The fast food franchise operator yesterday said it expects to sustain current levels of profitability and increase dividends in spite of the slowing the rate of refurbishment of its KFC stores, a major driver of the company's turn-around. The company is also considering adding a fourth brand, Taco Bell, to its three existing brands which include Pizza Hut and Starbucks. The shares fell 0.8% yesterday to $2.55.

Telecom Corp. (TEL): The Telecommunications (TSO, Broadband and Other Matters) Amendment Bill has passed its third reading in parliament, with government's $1.35 billion ultrafast broadband project having now cleared its last regulatory hurdle. Shares in Telecom, which won the bulk of the UFB rollout contracts, rose 2.9% yesterday to $2.48.

Telstra Corp. (TLS): The Australian phone company has signed an A$11 billion agreement to allow Australia's new high-speed broadband network to use its existing network and infrastructure. TLS shares fell 2.3% yesterday to $3.86 on the NZX.

Tower Ltd. (TWR): The general insurer said it expects rising costs of reinsurance will lift its expenses by as much as $31 million this year. Of that $7 million to $11 million will be spent on reinsurance excess and additional cover after the latest 6.3 magnitude quake earlier this month. That’s on top of the $15 million to $20 million impact it flagged on the February quake. TWR shares rose 2.6% yesterday to $1.59.

(BusinessDesk)

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