Stocks to watch: ALF, BTU, DNZ, NZX, VHP, WFK, WTL

Stocks to watch: ALF, BTU, DNZ, NZX, VHP, WFK, WTL

July 6 (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: Average prices of dairy products posted their biggest decline since March in Fonterra Cooperative Group’s latest online auction, with the GDT-TWI Price Index falling 6.7% to US$4,017 a metric tonne. Offshore leads were weak with the Standard & Poor's 500 Index closing 0.1% lower to 1,337.89 on its first day of trading after the Independence Day holiday.

Allied Farmers Ltd. (ALF): The embattled rural services company is selling or closing its stores due to their poor performance in the highly competitive farm merchandising market. The sale of the rural outlets is aimed at improving profit and allowing it to focus on its rural livestock arm. ALF shares rose 12.5% yesterday to 0.9 cents.

Bathurst Resources Ltd. (BTU): West Coast coking coal project developer says it's confident its Buller opencast mining project will go ahead, according to the ShareChat website. The company, through its Buller Coal subsidiary, is currently seeking resource consents for mines on the Denniston Escarpment and eight other sites across the Brunner coal seam. BTU shares rose 3.6% yesterday to $1.45.

DNZ Property Fund Ltd. (DNZ): The listed property investor announced it will spend $40.7 million on three Foodstuffs supermarkets in the North Island. The property investor has signed up Foodstuffs members as long-term tenants for the Miramar New World in Wellington, the Napier New World, and New Plymouth Pak-n-save. DNZ shares rose 0.8% yesterday to$1.31.

NZX Ltd. (NZX): The stock exchange operator filed proceedings in the High Court over its A$6.4 million purchase of the Clear grain exchange business in 2009. The claims for breach of warranty were filed against Ralec Commodities Pty., Ralec Interactive Pty., Grant Thomas, Dominic Pym and other related parties, it said. NZX shares rose 1.2% yesterday to $2.52.

Vital Healthcare Property Trust (VHP): Ascot Capital Management has formally asked the trust's manager to convene a unitholder meeting to consider options around the internalisation of its management contract. OnePath New Zealand Ltd., the currency manager, is looking to exit its contract in return for $14 million, while Ascot said they can be dumped for $3.1 million. Shares in the specialist medical clinic property investor were unchanged at $1.17.

Wakefield Health Ltd. (WFK): The private hospital investor has upped its offer to buy Norfolk Investments Ltd. for a second time as it tries to gain a stake in Tauranga’s Grace Hospital. The Wellington-based private health provider will offer Norfolk shareholders $3.80 a share, valuing the company at $24.23 million, it said in a statement. Wakefield says it has more than 70% of shares committed to accepting an offer, and will make a formal bid on July 20. The shares fell 1.8% to $5.50 yesterday.

Windflow Technology Ltd. (WTL): The Christchurch-based wind turbine maker is looking at renting out its Riccarton manufacturing space after demand for its products stalled, according to a Fairfax Media report. The company is currently looking at license its intellectual property to overseas manufacturers. WTL shares were unchanged yesterday at 50 cents, a historic low.

(BusinessDesk)

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