Stocks to watch: CHA, FPH, NZO, PGC, TWR, WFD
Aug. 5 (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: Trading on
the local market may be dominated by risk aversion today,
after fresh fears that Europe's sovereign debt crisis could
spread to core euro zone members triggered a fall sharp fall
on global markets. The flight to safe-haven assets saw the
New Zealand dollar recently trade at 83.51 U.S. cents, down
from a peak of 88.16 cents earlier this week.
On Wall Street, the Standard & Poor’s 500 Index tumbled 4.8% to 1,200.07, its lowest level since Nov. 30, 2010. In Europe, the Stoxx 600 Index fell 3.5%.
Charlie’s Group (CHA): Japanese brewer Asahi Group yesterday extended its takeover offer for the soft drink and juice maker by 14 days until Sept. 2. The company said it has so far received acceptances from shareholders representing 75.2% of shares. CHA shares were unchanged yesterday at 44 cents.
Fisher & Paykel Healthcare Corp. (FPH): The breathing mask and respirator manufacturer looks set for some foreign exchange respite after the New Zealand dipped below 84 U.S. cents today. The exporter generates about 50% of its revenue in U.S. dollar terms. FPH shares rose 1.2% yesterday to $2.55.
New Zealand Oil & Gas Ltd. (NZO): Fears that the global economy is about to slide back into recession saw demand for oil plummet to levels last seen during the Japanese earthquake and tsunami in March. ICE Brent Crude futures were last trading at US$107.69 a barrel, down from US$113.46. Shares in NZO, the energy exploration and production company, rose 1.5% yesterday t0 69 cents.
Pyne Gould Corp. (PGC): Californian hedge fund Baker Street Capital now controls almost 20% in the financial services company, having built up its stake over the past six weeks. Baker Street has refused to give any comments on its strategy. PGC shares were unchanged yesterday at 36 cents.
Tower Ltd. (TWR): The general insurer and the Earthquake Commission began their legal showdown at the High Court in Wellington yesterday over how the $100,000 payment is meant to work in situations like the Christchurch earthquakes. The EQC argues that householders pay $50 per annum for EQC insurance of up to $100,000 that can’t apply more than once in a year, while Tower’s interpretation is that it extends to include several events in a single period. TWR shares fell 0.7% yesterday to $1.44.
Wakefield Health Ltd. (WFD): The hospital operator rose 1% yesterday to $5.15 after it announced that its now controls 34.1% of Norfolk Investments Ltd. as part of its $3.80 per share offer. The deal, which is Wakefield's third tilt at Norfolk, is conditional on Wakefield gaining a 50% stake in the target.