NZ stocks: Insurer under scrutiny

By ELLEN READ

All eyes will be on Tower on Wednesday, when it unveils a half- year loss of around $180 million, after last week surprising the market with a profit warning and news of writedowns and a $200 million capital raising.

The insurer's bosses will give the much-awaited details of how they plan to raise that new capital. Many in the market tip a discounted rights issue, and predict that pivotal shareholder Guinness Peat Group will play a significant part in the process.

"It's going to be the event of the week," said Arthur Lim of Macquarie Equities.

Tranz Rail also looms large this week as investors look for the next step following RailAmerica's surprise exit from the scene. RailAmerica has abandoned its 75c a share bid for Tranz Rail. Australia's Toll Holdings now seems to have a clear run, and has already acquired a 10.1 per cent stake in Tranz Rail.

Fisher and Paykel Appliances announces its annual result on Thursday - with expectations for a net profit of around $70 million. A large proportion is expected to come from currency hedging - as was the case with last week's record Fisher and Paykel Healthcare result.

Lim said news would also be sought on the growth and development of the company's exports.

The Briscoe Group's annual meeting this Friday is likely to be a quiet affair after the company's latest quarterly sales figures of 9.2 per cent growth were released this month to the praise of analysts.

Although Briscoes' share price plummeted on its March release of a full-year $23.6 million profit, it was later seen as an overreaction by investors jittery over retail stocks.

News & Media NZ - the local arm of Dublin-based media company Independent News & Media - holds its annual "briefing meeting" for holders of its listed cumulative exchangeable preference shares in Auckland on Thursday.

Because preference share holders have no voting rights, the company is not required to hold a formal annual meeting, but takes the opportunity to brief investors on the group's global performance.

This year's meeting coincides with a visit by Independent News chief operating officer Gavin O'Reilly (also a News & Media NZ director), who is in the country to promote a News & Media NZ issue of up to $250 million of cumulative exchangeable preference shares.

Independent News & Media part-owns Sydney-based APN News and Media, publisher of the New Zealand Herald.

Also this week, the NZSE will release details of its June listing.

The exchange has appointed John Cimino, of Cimino Partners, to handle the float.