Stocks to watch: ATM, AIR, CAV, FBU, OGC, TLS

Stocks to watch: ATM, AIR, CAV, FBU, OGC, TLS

July 12 (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 on the local front, the market will be looking to offshore to see if the sharp pullback in risk appetite seen in the U.S. and Europe will spread to regional markets. Overnight equity and commodity prices continued to slide amid fears that Italy would be the next European country to face a debt crisis. On Wall Street, the Standard & Poor's 500 Index fell 1.8%, Europe's Stoxx 600 shed 1.4% and the 19-commodity Thompson Reuters CRB Index fell 0.9% to 340.62.

A2 Corp. (ATM): the producer of A2 dairy products in New Zealand and Australia says it expects to commission its own processing plant in southwest Sydney next January to meet demand. The new A$7.5 million factory would process 10 million litres of milk a year, some of it additional to 20 million litres of milk already supplied by contractors. ATM shares were unchanged yesterday at 15 cents on the NZAX.

Air New Zealand Ltd. (AIR): The national carrier rose 1.7% yesterday to $1.17 after Australian rival Qantas hiked its airfares as a result the country's carbon tax policy. Qantas Airways said it may face costs of about A$110 million to A$115 million in the 2013 financial year as a result of the policy.

Cavalier Corp. (CAV): The listed carpet maker rose 0.5% to $3.80 after Wool Equities emerged as a rival bidder for NZ Wool Services International. The company said has funding in place to make an offer for the wool scouring company. Cavalier Wool Holdings, made up of Cavalier, ACC's investment arm and private equity investor Direct Capital Investments was ordered to make a temporary halt to its offer for WSI on Friday pending an appeal by carpet maker Godfrey Hirst, which opposes that deal.

Fletcher Building Ltd. (FBU): The country's biggest construction firm is contemplating suing the Australian government after it axed the household insulation programme last year, according to a report in the NZ Herald newspaper. The cancellation of the scheme has left the company with an $18 million stockpile of Pink Batts insulation material. Fletcher shares fell 0.7% yesterday to $8.24.

OceanaGold Corp. (OGC): The gold mine operator announced that it has appointed Geoff Raby to its board. Raby is the current Australian Ambassador to The People’s Republic of China and will join the board when he steps down on Aug. 5. OGC shares fell 2.2% yesterday to $3.50.

Telstra Corp. (TLS): The Australian phone company's new mobile network is expected to cost A$2 billion, according to industry analysts, quoted in The Age newspaper. The company is expected to compete with Optus and Vodafone Hutchison Australia for new spectrum frequencies when auctioned next year. TLS shares rose 0.8% yesterday to $3.90 on the NZX.

(BusinessDesk)

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