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Stocks to watch: DGL, FBU, HGL, RBD, SKL, TEL

Stocks to watch: DGL, FBU, HGL, RBD, SKL, TEL

Dec. 15 (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 held onto recent gains on signs of better-than-expected consumer spending in the world’s largest economy. U.S. retail sales rose more than forecast in November, while optimism among small businesses climbed to the highest level in three years. The Federal Open Market Committee kept interest rates near zero and maintained its asset-purchase programme at US$600 billion as economic growth failed to provide a spark to the labour market. In late afternoon trade the Standard & Poor's 500 Index rose 0.01% to 1,240.58, while in Europe the Stoxx 600 rose 0.2% to 277.65. The New Zealand dollar gained to 75.38 U.S. cents from 75.09 cents yesterday, and increased to 67.63 on the trade-weighted index from 67.43.

Delegat’s Group (DGL): The winemaker won over shareholders in Oyster Bay Marlborough Vineyards, reaching the 90% target for compulsory acquisition. Delegat’s, which owned 55% of Oyster Bay before making its takeover offer, paid $2.08 a share for the rest of the grape grower, valuing the target company at $18.7 million. The shares were unchanged yesterday at $1.94.

Fletcher Building Ltd. (FBU): New Zealand's biggest construction company has placed its shares in a trading halt pending a material announcement by the company. The shares last traded at $7.85 before the suspension.

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Hallenstein Glasson Holdings (HGL): The clothing retailer is expected to face tough head winds in market amid weak consumer confidence and a shift to cautious spending behavior, according to Goldman Sachs & Partners analyst Buffy Gill, quoted on the ShareChat website. She said the company is likely to face cost pressures, as rising material and labour costs in China put earnings under pressure. The shares rose 1.7% yesterday to $4.17.

Restaurant Brands NZ Ltd. (RBD): The fast food franchise operator yesterday reported a 1.8% increase in third quarter sales, again led by a strong performance at its KFC franchise. Total sales rose to $74.2 million in the three months to Dec. 6, compared to $72.9 million in the same period last year, while same store sales also rose 1.8% to $71.7 million. The shares were unchanged yesterday at $2.61

Skellerup Holdings (SKL): The rubber goods and milking equipment group will join the NZX 50 benchmark on Dec. 20 after Pike River Coal Ltd. was suspended from the exchange in the wake of its receivership. The shares rose 4% yesterday to $1.03.

Telecom Corp. (TEL): New Zealand's biggest telephone company and Vodafone have dodged a Commerce Commission investigation on national mobile roaming pricing, after 2Degrees signed an agreement with Vodafone giving it’s a reasonable price entry point, effectively squashing anticompetitive allegations. The shares rose 1% yesterday to $2.12.


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