NZ stocks: All eyes fixed on the 'Cullen Fund' cash

By PAUL PANCKHURST

One of the sharemarket's big guns, Fletcher Building, and a little newcomer, PostiePlus, will make headlines this week, but the bigger story is likely to be where the New Zealand Superannuation Fund puts its cash.

The so-called Cullen Fund is to announce its asset allocation strategy on Thursday.

The fund's financial clout - it will invest many billions in the long term - could have a dramatic effect on the dynamics of the sharemarket, NZX, but there is debate on how much the fund should invest there and how much the market can absorb.

Stock exchange chief executive Mark Weldon has pitched for up to 30 per cent of the fund to go into local shares.

JBWere broker Humphrey Sherratt said the fund's decision would be a main focus for the week.

It is due to begin investing by the end of next month.

The initial public offering of shares in retailer PostiePlus Group opens today.

The group's biggest business is the 59-store Postie+ chain, which sells casual clothing.

The company says the $15 million of new funds raised in the issue will be used to:

* Fund most of the acquisition of manchester retailer Arbuckles.

* Repay loans taken out to acquire Auckland-only department store chain Rendells.

* Provide development and working capital for expansion.

* Cover some of the costs of the IPO.

The offer closes on August 29, and the company expects to list on September 2.

Fletcher Building will report on Wednesday.

After earnings guidance from the company, brokers expect no surprises but will be keen to hear about the company's outlook.