Stocks to watch: CHA, FPH, HNZ, SEK, TEL, WFD
Aug. 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: The BusinessNZ Performance of Services Index for July is scheduled to be released today, with the data expected to following the trend from last week's PMI and show the services sector remained in expansion during the month. The New Zealand share market may again be looking offshore for leads today in the wake the massive wave of volatility which struck global equities last week. Wall Street managed to close in the black on Friday, with the Standard & Poor's 500 Index gaining 0.5% although on a weekly basis the benchmark fell for its third week in a row.
Charlie's Group (CHA): Japanese brewer Asahi Group has acquired the fruit and soft drink maker, reaching the 90% level of acceptances for the company, the latest in a spree of acquisitions. Asahi’s New Zealand unit declared it had 90.6% of Charlie’s, allowing it to compulsorily the rest under takeover law. CHA shares fell 2.3% on Friday to 43 cents.
Fisher & Paykel Healthcare Corp. (FPH): The steep decline in the respirator manufacturer's share price has prompted Morningstar to upgrade their recommendation to 'buy' with an intrinsic valuation of $3.30, according to a report on the ShareChat website. The fund manager expects said the company's outlook was better than the previous year from a constant currency perspective. FPH shares fell 2.6% on Friday to $2.24.
Heartland New Zealand Ltd. (HNZ): The lender formed in the merger of Marac Finance with the Canterbury and Southern Cross building societies was put on notice last week by rating agency Standard & Poor’s over its earnings outlook and legacy loans. The would-be bank is currently rated BBB-, which it needs to maintain to secure a banking licence. HNZ shares were unchanged on Friday at 58 cents.
Seeka Kiwifruit Industries Ltd. (SEK): The fruit grower and packing company says attempts to constrain the PSA bacteria appear to be failing, with the kiwifruit vine canker spreading beyond the Te Puke growing region to the Matapihi area, north of the Papamoa Hills. SEK shares fell 3.6% on Friday to $1.88.
Telecom Corp. (TEL): The country's biggest phone company could miss its full year earnings forecast of between $330 million and $370m when it posts its results at the end of the week, according to analysts quoted by Fairfax Media. Risks to the forecast include disruptions from the Christchurch earthquakes, ultrafast broadband project costs, Southern Cross Cable dividends, and payments related to its XT network problems. TEL shares fell 1.8% on Friday to $2.45.
Wakefield Health Ltd. (WFD): The listed hospital operator, which is looking to buy a controlling stake in Norfolk Investments Ltd., announced last week that it now has acceptances from shareholder representing 70.4% of the company’s shares. Wakefield shares were unchanged on Friday at $5.10.