Stocks to watch: AIR, CEN, DGL, HGD, KIP, KMD, TEL, XRO

Stocks to watch: AIR, CEN, DGL, HGD, KIP, KMD, TEL, XRO

Dec. 3 (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 equity markets gained after the European Central Bank said it would increase it its purchases of government bonds to support financially troubled euro zone countries. Investor sentiment was further supported by another tranche of positive economic data from the world's biggest economy, with the Dow Jones U.S. Home Construction index up 4.3%, and retailers reporting better-than-expected sales in November. In late afternoon trade the Standard & Poor's 500 Index rose 1.2%, while in Europe the Stoxx 600 rose 1.7%. The New Zealand dollar was little changed against the greenback at 75.40 U.S. cents from 75.37 cents yesterday.

Air New Zealand Ltd. (AIR): The national carrier's booking and check-in systems crashed on Wednesday night after a power failure at an IBM data centre. This is the second a power issue at IBM has crippled the airlines computer systems. Shares rose 2.2% to $1.41.

Contact Energy Ltd. (CEN): An independent energy analyst has labeled the electricity utility's proposed $400 million wind farm near Dannevirke as not commercially viable, just days after the Environmental Court approved the venture. Quoted on the Stuff website, energy consultant Bryan Leyland said Contact was unlikely to build the wind farm and was simply locking up wind resources to keep competitors out. Share rose 0.5% yesterday to $6.02.

Delegat's Group (DGL): The winemaker looking to buy remaining shares in grape grower Oyster Bay Marlborough Vineyards it does not already own told shareholders at its annual meeting that it will not go on a buying spree, and will continue to use the premium Oyster Bay brand to expand in offshore markets. Shares rose 4% yesterday to $1.81.

Heritage Gold Ltd. (HGD): The exploration and mining company has extended the time limit for shareholders to accept their preferential entitlement to shares in the initial public offering for Australian cobalt play Broken Hill Prospecting Ltd. According to the company the Pike River coal mine disaster has delayed many New Zealand shareholders’ response, and as a result, the acceptance date has been extended to Dec. 20 from Dec. 6. Shares were unchanged yesterday at 2.9 cents.

Kathmandu Holdings (KMD): The outdoor clothing retail is holding up well in tough market conditions with first quarter sales up 0.6% compared to the same period previously, according to Craigs Investment Partners, quoted on the ShareChat website. Kathmandu told shareholders at its annual meeting that trading is likely to remain uncertain and volatile with discretionary retail spend under pressure. Craigs values the stock at $2.15 and has a $1.60 12-month price target. Shares were unchanged yesterday at $1.62.

Kiwi Income Property Trust (KIP): The country's biggest listed property investor yesterday signed an agreement to buy Auckland's LynnMall Shopping Centre from AMP Capital Property for $174 million. The purchase will lift the Trust's retail sector weighting from to 63% from 60% and increase its weighting to Auckland to 53% from 48%. The acquisition will be funded from existing bank debt facilities. Shares were unchanged yesterday at $1.

Telecom Corp. (TEL): Brightstar Corp., which sources mobile phones for Telecom's XT network, has been accused of making excessive profits from its contract, Fairfax Media reported. Telstra, the Australian telephone company, has announced plans to cancel its contract with the company over excessive margins, and Telecom had not ruled out a similar move. Shares rose 0.9% yesterday to $2.18.

Xero Ltd. (XRO): The online accounting software maker has been listed as the eighth fastest growing company in the Asia Pacific after growing more than 2,000% last year, according to Deloitte's list of the top-10 fastest growing firms. Shares rose 1.5% yesterday to $2.05.

(BusinessDesk)

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