Stocks to watch: CCC, CMO, FBU, MOW, SKC, WBC
Aug. 17 (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 average prices of dairy products recorded their smallest decline in five sales at Fonterra Cooperative Group’s latest online auction, with the GDT-TWI Price Index falling 0.9% to US$3,660 per metric tonne.
Global equity markets reversed their recent run of gains overnight after official data showed the euro zone economy slowed in the second quarter. On Wall Street, the Standard & Poor's 500 Index fell 1% to 1,192.76, Europe's Stoxx 600 Index declined 0.1% to 237.56, and the 19-commodity Thompson Reuters Jefferies CRB Index slipped 0.1% to 330.19.
Cavotec MSL Holdings (CCC): The global engineering group has acquired INET, a ground support equipment supplier, in an asset deal which will see it issue 7.7 million shares at $3.30 apiece, and includes a potential earn-out of US$4 million based on a range of performance measures. CCC shares fell 0.4% yesterday to $2.65.
Colonial Motor Co. (CMO): The car and tractor dealer reported a trading profit after tax of $8.33 million for the year to June 30, an increase of $2.2m on the previous year. However the company cautioned that consumer markets look to remain weak in the near term. CMO shares rose 1.7% yesterday to $2.35.
Fletcher Building Ltd. (FBU): The country's biggest construction firm has reported net earnings before unusual items of $359 million for the 12-months ending June 30, up from $301 million in the previous year. The results beat the $325.9 million earnings forecast by broker Forsyth Barr. FBU shares rose 0.4% yesterday to $7.73.
Mowbray Collectables Ltd. (MOW): The listed collectables dealer and auction house says it faces write-offs of at least $300,000 from its stake in First East Auction Holdings Ltd. Mowbray paid A$1.2million for a 20% stake in the Australian company in 2009. MOW shares were unchanged yesterday at 50 cents.
Sky City Entertainment Group (SKC): The casino and hotel operator has reported a 20% increase in full-year net earnings to $123 million for the 12-months ending June 30, which includes the proceeds from the sale of its cinema business. Reported revenue, excluding earning from cinemas which were divested in February 2010, rose 4.3% to $810 million. SKC shares were unchanged yesterday at $3.51.
Westpac Banking Corp. (WBC): The Australian lender fell 2.3% to $25.45 after third quarter cash earnings fell 2% to A$1.55 billion, though operating income rose 1.5% as the bank widened margins across the board. The bank’s New Zealand unit reported a strong third quarter, with lending growing by almost 2% in local dollar terms, outpacing the 1% total lending growth across the group.