Stocks to watch: CEN, FPH, JTM, OGC, PGC, TEL
Dec. 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: Global equity markets shrugged off European sovereign debt concerns amid reports Germany has rejected as call to expand the European Union’s emergency bail-out fund. In afternoon trade the Standard & Poor's 500 Index rose 0.05% to 1,225.3, while in Europe the Stoxx 600 rose 0.2% to 271.38. The kiwi dollar fell to 76.13 U.S. cents from 76.28 cents yesterday. The Reserve Bank of Australia is expected to keep rates on hold at 4.75% when it issues its monetary policy statement today.
Contact Energy Ltd. (CEN) New Zealand's third biggest listed company rose 2.3% yesterday to $6.21. Shane Solly, portfolio manager for Mint Asset Management, said the company had recently benefitted from higher electricity spot prices as the dry summer put pressure on hydroelectricity suppliers.
Fisher & Paykel Healthcare Corp. (FPH): The breathing mask and respirator manufacturer's poor earnings performance is expected to recover with the launch of its news ICON product, according to First NZ Capital analyst Sarndra Urlich, quoted on the ShareChat website. She said the snoring and sleep apnea treatment received positive feedback so far but investors will have to wait until at least the second half of 2011 to see if it gains traction in the market. Shares rose 1% yesterday to $3.13.
Jasons Travel Media Ltd. (JTM): The travel and accommodation guide publisher yesterday reported softer first-half earnings on the back of weaker advertising revenues. Net profit for the six months ended Sept. 30 fell 1.1% to $1.2 million while revenue fell 3.5% to $8.2 million. The previous first-half result had been down some 16%. Shares were unchanged yesterday at 35 cents on the NZAX.
OceanaGold Corp. (OGC): Uncertainty on global markets continued to support gold prices, a perceived safe haven asset. Spot gold prices rose as high as US$1,420.31 an ounce, just short the record US$1,424.10 it reached in early November, before easing to US$1,413.40 an ounce later. Shares in OceanaGold, the mining company, fell 1.1% yesterday to $4.35.
Pyne Gould Corp. (PGC): Shares in Pyne Gould, the finance company which controls the bulk of New Zealand's car finance market through its Marac Finance unit, were unchanged yesterday at 37 cents after government data showed new car registrations were flat in November. In the month 5,869 vehicles were registered compared with 5,866 in October. Used car registrations rose 12.3% to 7,811 compared with the previous month.
Telecom Corp. (TEL): Crown Fibre Holdings announced the first two regional partners for UFB in Northland and the central North Island - lines company Northpower and a unit of WEL Networks. Separately, the Commerce Commission has urged the High Court at Auckland to fine New Zealand's biggest telephone company between $20 million and $25 million after it was found guilty of anti-competitive pricing strategies for high-speed data transmission. The penalty, if successful, would be the largest corporate payout in the country to date. Shares rose 1.4% yesterday to $2.18.