Article – Businesswire

June 22 (BusinessWire) – The following stocks may be active on the New Zealand exchange after developments since the close of trading on Friday. All prices are in New Zealand dollars unless specified.

Stocks to watch: AMP, HED, OGC, POT, SLG, SKC

June 22 (BusinessWire) – The following stocks may be active on the New Zealand exchange after developments since the close of trading on Friday. All prices are in New Zealand dollars unless specified.

Themes of the day: The market digested the news that China is to relax the yuan’s fixed rate to U.S. dollar, and Channing Smith, vice president of Capital Advisors in Tulsa said “this move is going to be good for global markets and help the bottom lines of companies with Chinese exposure.” Spot yuan prices rose to its highest level since its revaluation five years ago, as its floating will boost China’s buying power abroad and is seen as broadly positive for the global economic recovery, and commodity currencies such as the N.Z. dollar. It spurred a worldwide rise in commodity and oil prices and boosted riskier assets across the board. Overnight the N.Z. dollar fell to $0.7086 from $0.7130 against the greenback.

AMP Ltd. (AMP): Australia’s largest provider of pension plans yesterday gained Commerce Commission approval to acquire the Australasian assets of Axa Asia Pacific Holdings Ltd. AMP is in pole position to bid for Axa after rival suitor National Australia Bank was knocked back in its superior A$13.29 billion proposal by Australia’s regulator. The stock rose 0.3% to $6.98 on the NZX yesterday.

Horizon Energy Distribution Ltd. (HED): First NZ Capital Securities yesterday confirmed that it had completed its stand in the market for client Marlborough Lines Ltd., which has acquired 2.5 million shares at $4.15 apiece. The shares last traded in June 18 at $4.06, equivalent to the offer price minus the next dividend payment.

OceanaGold Corp. (OGC): The operator of the Macraes gold field rose 1.5% to a new record high close of $4.76 after the price of gold climbed to a new record. The precious metal rose again overnight, reaching US$1,265.30 an ounce in London as fears about Euro-zone debt pushed investors to the relative safety of gold. The shares have soared 244% in the past 12 months.

Port of Tauranga Ltd. (POT): New Zealand’s largest export port has raised its expected profit to about $50 million from $45 million for the year ended this month. Revenue growth through palm kernels, fertilizers and forestry were the standouts. The shares lifted tens cents yesterday to $6.80.

Sealegs Corp. (SLG): The amphibious boat maker yesterday announced that that it would take a $6.2 million capital injection from private equity group Avenport Investment Corp in exchange for 20% in the company. This will bring Avenport’s stake in the company to 39.9%. Sealegs stock was unchanged at 23 cents yesterday.

Sky City Entertainment Group Ltd. (SKC): New Zealand’s largest casino owner said after taking advice on the government’s recently announced deferred building depreciation tax liability it is making a one-off net profit adjustment in profit to the end of June of $60 million. The removal of building depreciation and corporate tax rate reduction from 30% to 28% will be to increase the Group’s tax paid income by approximately $2 million a year from July 2010. It expects its June 2010 profit to be between $126 million to $130 million. Its shares lifted two cents yesterday to $2.86.

Telstra Corp. (TLS): Australia’s biggest phone company surged 9.5% to $4.16 on the NZX yesterday after the weekend announcement that the company signed an accord with the Rudd administration that would see the company migrate its voice and data traffic onto the new government-backed network. Telecom Corp. (TEL) rose 2.7% to $1.94 as some investors speculated it could strike a similar deal in New Zealand.

(BusinessWire)

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