Stocks to watch: September 8

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.

Equities took a beating overnight amid reports that the European banking system might not be as strong as investors had been led to believe in the wake of stress tests earlier this year.

In late trading, the Dow Jones Industrial Average fell 0.65 percent, the Standard & Poor's 500 Index declined 0.70 percent and the Nasdaq Composite Index lost 0.69 percent.

US markets were closed yesterday for the Labor Day holiday. The Stoxx Europe 600 Index declined 0.5 percent to 259.76.

Air New Zealand (AIR): The national carrier announced that it was slashing the cost of lead-in economy fares, and introducing four new in-flight product options for customers on flights between New Zealand, Australia and the Pacific Islands. The stock rose 3.9 percent to $1.35 yesterday.

Goodman Property Trust (GMT): The company announced it had raised $45 million through a private debt issue. The seven-year bonds will pay 7.58 percent per annum, and are rated BBB+ Standard & Poor’s.

The proceeds will be used to repay bank debt and diversify the trust’s funding sources. The trust’s units rose 1 percent yesterday to 96 cents. 

ING Property Trust (ING): The listed property manager announced that it had further consolidated its portfolio with the sale a property and the acquisition of another. The properties, both situated in Auckland, were valued at $10.5 million.

The company said the transactions were aimed at reducing occupancy risk and improved the overall quality of investments it holds. Shares were unchanged yesterday at 71 cents.

L&M Energy (LME): The coal seam gas explorer yesterday announced that it had raised $1.4 million in a share purchase plan, adding to its placement in July.

Some 15 percent of the company’s shareholders participated in the offer, buying shares at 9 Australian cents on the ASX and 11 cents on the NZX. The stock last traded at 12 cents.

NZX (NZX): The securities market operator released its August trading figures yesterday showing the company had stemmed a slide in trading values and volumes last month, reporting a 21 percent gain to $1.76 billion in August from July.

Trading was still down 27 percent from the same month of 2009. The stock rose 3.5 percent yesterday to $1.50.

OceanaGold Corp (OGC): The gold miner today announced the resignation of its chief executive Paul Bibby, who had stepped down for personal reasons. The company said would begin searching for a replacement immediately. Shares fell 1.2 percent yesterday to $4.74.

TrustPower (TPW): The power utility controlled by Infratil Ltd. Said it may offer bonds to the public. It would sell $100 of debt including $25 million oversubscriptions. The bonds will have a term of approximately seven years, maturing on 15 December 2017. 

The stock traded unchanged yesterday at $7.28.

Xero (XRO): The accounting software company’s customer growth is accelerating and, should have about 30,000 customers on the books by March 2011, according to First NZ Capital analyst Barry Lindsay, quoted on the ShareChat website. Shares were unchanged yesterday at $1.47.

- BusinessDesk