Stocks to watch: ALF, CCC, DIL, DNZ, MFT, TLS
Aug. 11 (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: On the local data front, markets will be watching for the release of BusinessNZ's Performance of Manufacturing Index for July, and the ANZ Roy Morgan Consumer Confidence Survey for August. Global markets were in full retreat mode amid speculation that French banks were overexposed to the Greek sovereign debt. On Wall Street, the Standard & Poor's 500 Index fell 3.5% to 1,130.09, and Europe's Stoxx 600 dropped 3.8% to 223.50.
Allied Farmers Ltd. (ALF) The rural services company which failed to transform itself into a major lender said it will probably have to write down its stake in Matarangi Beach Estates Ltd. to zero as the prior lender, HSBC, signaled that it will take a loss on the loan. ALF shares were unchanged yesterday at 0.8 cents.
Cavotec MSL Holdings (CCC): The global engineering company which owns Christchurch-based MoorMaster said today it would ask shareholders to swap their stock for units in a Swiss-based holding company next month. The special meeting is scheduled for Sept. 1 in Christchurch, and will fulfill the global engineering group’s ambition to move to the Nasdaq OMX Stockholm, a more liquid bourse. CCC shares were unchanged yesterday at $2.66.
Diligent Board Member Services Inc. (DIL): The corporate governance software company rose 5.5% yesterday to $1.16 after it said second quarter sales nearly doubled and it reported a bottom-line profit of US$822,308 in the six months ended June 30.
DNZ Property Fund Ltd. (DNZ): DNZ chairman Tim Storey says the New Zealand property market remains at the bottom of its cycle and opportunities are available for the fund, according to a report on the ShareChat website. He said the fund will continue to look at strategies to grow the business. DNZ shares rose 1.7% yesterday to $1.22.
Mainfreight Ltd. (MFT): The transport and logistics company has reported a 109% increase in net profit to $14.22 million in the three months to June 30, on the back of improved operations in New Zealand, Australia, the U.S., and Europe. Only Asia was behind the previous year's result. In the period, earnings before interest, tax, depreciation, and amortisation reached a record $32.13 million, up from $15.52 previously. MFT shares rose 2.3% yesterday to $9.62.
Telstra Corp. (TLS): The Australian phone company is tipped to report a double-digit decline in net profit today, as its year-long bid to capture more customers erodes the bottom line, according to a Fairfax Media report. The telco is expected to report net profit for the 12 months to June 30 around A$3.13 billion, according to the median of four analyst estimates gathered by AAP. TLS shares rose 4.4% yesterday to $3.55.