Stocks to watch: GMT, NZO, PGC, SCT, TWR, WTL
Dec. 9 (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: Reserve Bank Governor Alan Bollard held the official cash rate at 3%, as expected, and said future hikes in interest rates will be slower than previously predicted. The kiwi dollar dropped fell to 74.40 U.S. cents from 74.94 cents immediately before the statement was released. U.S. 10-year Treasury yields rose to near 3.3%, their highest level since June, as deficit concerns rose among investors after Bush-era tax cuts looked increasingly like to be extended for another two years. Global equity markets were mixed as investors weighed up the positive of an improved economy against the negative of rising corporate borrowing costs. In afternoon trade the Standard & Poor's 500 Index rose 0.15% to 1,225.54, while in Europe the Stoxx 600 0.4% to 274.98.
Goodman Property Trust (GMT): Goodman (NZ) Ltd., the manager of the commercial and industrial properties owner announced it had agreed to acquire a Christchurch property occupied by Carter Holt Harvey Packaging for $12.5 million. The 20,380sqm office and warehouse facility provides an estimated yield on cost of 10.5% and is expected to settle before 31 December 2010, the company said in a statement. Shares rose 2.2% yesterday to 94 cents.
New Zealand Oil & Gas Ltd. (NZO): Pike River Coal Ltd. said it will have to slash its workforce of 180 as it looks into the feasibility of reopening. The coal miner is also estimated to need $200 million in additional capital in order to reopen. NZOG, which owns a 29% stake in the coal miner, fell 1.1% yesterday to 88 cents.
Pyne Gould Corp (PGC): Investors in the financial services company's Marac Finance unit voted overwhelmingly in favour of merging with Southern Cross Building Society and Canterbury Building Society to form a $2.2 billion South Island bank, with a vote by CBS depositors the only hurdle procedural remaining. Shares were unchanged yesterday at 38 cents.
Scott Technology Ltd. (SCT): The manufacturer of automated and robotic production systems told shareholders at its annual meeting that it has $10 million plus of new orders in the bag, placing it in a strong position going forward. The company reported a net profit of $2.79 million for the year to Aug. 31, up from $265,000 previously. Shares were unchanged yesterday at $1.20.
Tower Ltd. (TWR): The general insurer is rated 'hold' by Aegis Equities Research analyst David Ellis, quoted on the ShareChat website. He expects growth to improve on the back of rising insurance and health business prices in spite of challenging market conditions, and forecasts the company will generate earnings of $57 million in the 2011 financial year. Shares fell 1% yesterday to $1.99.
Windflow Technology Ltd. (WTL): The two-blade wind turbine manufacturer says it can turn to potential private investors if it needs to top up after raising $3.3 million in an offer to existing shareholders for $5.4 million in a one-for-two renounceable rights issue. The total includes a $1 million partial underwrite from original shareholders, through Aeolian Property Co. One of the key reasons for the raising is to satisfy Windflow’s bankers ahead of beginning exports to the U.K. Shares fell 2.3% yesterday to 84 cents.