Stocks to watch: AIR, FBU, NWC, SCT, TEN, TWR, VHP

Stocks to watch: AIR, FBU, NWC, SCT, TEN, TWR, VHP

June 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: Global equities rose amid hopes that Greece's Prime Minister will secure enough votes tomorrow to pass a package of tax hikes and spending cuts needed if the indebted country is to avoid a default. On Wall Street, the Standard & Poor's 500 Index closing 0.9% higher at 1,280.09, while Europe's Stoxx 600 eked out a gain of 0.1% to close at 264.01. Commodity prices continued their decline, with the Thomson Reuters Jefferies CRB Index, a measure of 19 hard and soft commodities, falling 0.3% to a fresh four month low of 328.75.

Air New Zealand Ltd. (AIR): The national carrier's long-haul traffic numbers suffered in May due to the impact of the Christchurch and Japan earthquakes. The airline carried 892,000 or 1% more passengers in the month than in the same month a year earlier, but demand, or revenue passenger kilometers, fell 2.8%, reflecting a 9.3% fall in long-haul passengers. AIR shares were unchanged at $1.11 yesterday.

Fletcher Building Ltd. (FBU): The country's biggest construction firm says the rebuild of Christchurch will remain on hold until the aftershocks come to an end, according to chief executive Jonathan Ling, quoted in the NZ Herald. The delays are expected to have an impact on analysts' earnings forecasts, which have risen sharply amid expectations of a surge in rebuild activity. Fletcher shares fell 0.3% yesterday to $8.65.

Methven Ltd. (MVN): The tapware manufacturer fell 4% yesterday to $1.45 after it said conditions in its three main markets, Australia, New Zealand and the U.K., would remain challenging in the near term. The company also said it expects to lift net profit by at least 25% to $8.5 million for the year ending March 31, 2012.

New Zealand Wine Co. (NWC): The winemaker is calling for its bankers to hold an independent review of its finances and business model after it breached its loan agreement with ANZ. Under the terms of the loan the company had agreed to keep underlying earnings at least 1.3 times higher than its interest costs. NWC shares were unchanged yesterday at $1.32 on the NZAX.

Scott Technology Ltd. (SCT): The Dunedin-based manufacturer is looking to raise $9.5 million in a discounted 1-for-4 rights issue. The company is offering a pro rata renounceable rights issue to existing shareholders a $1.20 apiece. That’s a 17% discount to the stock’s closing price on Friday. Scott shares were unchanged yesterday at $1.45.

Tenon Ltd. (TEN): The wood mouldings manufacturer announced yesterday it had signed up to a new US$70 million bank facility to retire existing debt and fund future needs. The shares were unchanged yesterday at 85 cents.

Tower Ltd. (TWR): The general insurer says it's still in the process of gathering the information needed to make an official bid for rival AMI Insurance Ltd., according to a Fairfax Media report. General manager Rob Flannagan said the challenge was assessing the value of AMI's business outside its home town of Christchurch. Tower shares fell 2.5% yesterday to $1.56.

Vital Healthcare Property Trust (VHP): The specialist medical property investor has had its $3.8 million loan to key Australian tenant repaid early. The loan to Healthe Care, which had been due to be repaid in 2014, was redeemed early after the company was bought out. Vital shares rose 0.9% to $1.19.

(BusinessDesk)

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