Stocks to watch: INS MFT, NZO, PGC, THL, WFT

Stocks to watch: INS MFT, NZO, PGC, THL, WFT

April 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:

With no data expected of the domestic front, New Zealand investors will be looking offshore for leads. On Wall Street, the Standard & Poor's 500 Index was flat after an unexpected climb in jobless claims sapped risk appetite, while Europe's Stoxx 600 fell 0.5% as sovereign debt concerns flared up again.

Markets will also be looking to the release of Chinese consumer index data for March at 2pm local time for a read on whether authorities will implement further policy tightening to curb rampant inflation in the world's second largest economy.

Insured Group (INS): The Australian insurer that joined the New Zealand stock exchange through a reverse listing, has canned its plan to buy a controlling stake in an Australian motor vehicle accident assessor. The Perth-based insurer said the conditions of a bid to buy 51% of International Vehicle Integrity Centre Ltd. (IVIC) weren’t satisfied, and it won’t go ahead with the purchase. The shares, which trade infrequently, halved in value yesterday to just 0.1 cents apiece, valuing the firm at $1.5 million.

Mainfreight Ltd. (MFT): The trucking company's profits are forecast to grow by $10.5 million to $73.5 million in the 12 months ending March 2012 following is expansion into Europe, according to Forsyth Barr analyst Rob Mercer, quoted on the ShareChat website. Last month the company acquired Dutch freight group Wim Bosman for 120 million euros, a price which includes a 10 million euro earn-out. The shares, which Mercer rates as 'accumulate', rose 0.3% yesterday to $9.33.

New Zealand Oil & Gas Ltd. (NZO): Shares in the energy exploration and production company have seen renewed interest from investors on the expectation that it will recoup some of its investment in failed Pike Rover Coal Ltd. as receivers begin winding up assets. Pyne Gould was a major shareholder in Pike and held a number of its credit lines. The shares rose 2.1% to 96 cents.

Pyne Gould Corp. (PGC): The financial services company, which owns an 18.3% stake in rural services firm PGG Wrightson Ltd., rose 3.5% yesterday to 30 cents after Singapore's Agria Corp. announced that it had successfully acquired a majority stake in Wrightson, paying 60 cents a share. PGC’s own restructuring, which will see a share consolidation and divestiture of its stake in Building Society Holdings, has been waiting for the Agria deal to succeed.

Tourism Holdings (THL): Ballylinch LP today launched a partial a bid to buy 40.85% of the shares in the campervan rental company at 65.7 cents apiece. If successful, the bid would give Ballylinch control over 60% of the stock. THL shares were unchanged yesterday at 60 cents.

Windflow Technology Ltd. (WTL): Shares in the NZAX-listed wind turbine developer fell 6.3% yesterday to 75 cents after the announced it is cutting back staff, considering fresh capital raising, and dusting off interest from foreign manufacturers in licensing the company’s technology as it seeks to plug a substantial revenue gap. The moves come as Windflow reaches the end of its turbine production for the Te Rere Hau windfarm without securing new orders under the British government’s subsidy scheme for small-scale turbine deployment.

(BusinessDesk)

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