Stocks to watch: FBU, GPG, NZO, OGC, SKC, TWR, WHS, WBC

Stocks to watch: FBU, GPG, NZO, OGC, SKC, TWR, WHS, WBC

Feb. 16 (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: The focus of the sharemarket will most likely remain on Fletcher Building Ltd. and SkyCity Entertainment Group today, with both companies having delivered their interim earnings today. Dairy prices rose to new highs on Fonterra Cooperative Group’s online trading platform. The price of whole milk powder, which dominates trading, surged 7.9% to US$4,320 a tonne. Global equities were mixed, with after weaker consumer spending numbers sapped investor appetite on Wall Street, while better-than-expected results from banking stocks pushed European markets higher. In late afternoon trade the Standard & Poor's 500 Index fell 0.5% to 1326.2, and the Stoxx 600 Index rose 1.1% to 289.44.

Fletcher Building Ltd. (FBU): The country's biggest listed company reported an 8% increase in earnings to $166 million for the six months to Dec. 31 from a year ago. Earnings before interest and tax rose $14 million to $285 million. The results were in line with forecasts from broker Forsyth Barr. The shares fell 0.5% yesterday to $8.21.

Guinness Peat Group (GPG): The Accident Compensation Corporation announced that it would reduce its holding in the investment holding company to 4.85%. The move comes after GPG said it would look to sell most of it assets and return the proceeds to shareholders, which saw the shares rise to a near nine month high of 78 cents. The shares were unchanged at 75 cents yesterday.

New Zealand Oil & Gas Ltd. (NZO): The energy exploration and production company is among the biggest losers from the collapse of Pike River Coal, according to the first report from receivers PricewaterhouseCoopers. Unsecured creditors are owed $31.9 million, of which NZOG's share of that is $13.2 million. The company held 29% of Pike's shares, $39million in convertible bonds and had extended a $12 million short-term loan to Pike. NZOG’s shares were unchanged at 87 cents.

OceanaGold Corp. (OGC): The operator of the Macraes Flat and Reefton goldfields has increased its measured and indicated New Zealand gold resources by 22% to 4.61 million ounces. The company said it has maintained a steady exploration across its New Zealand operations for the past 18 months, with total proven and probable reserves now increasing to 2.15 million ounces of gold. The company said this will underpin the New Zealand operational base for some years as the company pursues other growth opportunities. The shares rose 9.7% yesterday to $3.75.

SkyCity Entertainment Group: The casino and hotel operator reported a 5.5% drop in net profit to $67.1 million for the six months to Dec. 31 compared to the previous period, which factors in the impact from its discontinued cinema operations. Stripping out cinema operations, revenue for the period rose 2.2% to $410.6 million. The company declared an 8 cents-per-share interim dividend. The stock rose 0.9% yesterday to $3.33.

Tower Ltd. (TWR): Fidelity Life Assurance says it may be interested in acquiring part of general insurer Tower after majority shareholder Guinness Peat Group said it was looking to sell off most of its assets, according to a Fairfax report. The move comes three months after Tower launched an unsuccessful bid For Fidelity, which was turned down by the company's largest shareholders. The shares fell 1% yesterday to $2.98.

Warehouse Group (WHS): New Zealand's biggest listed retailer is in need of a strategic makeover after reporting another quarterly fall in sales, according to First NZ capital analyst Sarndra Urlich, quoted on the ShareChat website. The company reported that Red Shed sales were down 2.7% for the two months ended Jan. 2 with same-store sales down 3.8% compared with the same two months a year earlier, the 13th quarterly decline out of 18. The shares fell 0.3% yesterday to $3.54.

Westpac Banking Corp. (WBC): The Australian lender reported cash earnings were approximately A$1.55 billion ($2.05 billion) for the three months to Dec. 31, slightly down on the same quarter a year earlier. However, the unaudited numbers were 5% higher on the average results of the third and fourth quarters of last year. The shares fell 0.3% yesterday to $32.20.

(BusinessDesk)

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