NZ stocks: Interest rises head agenda

By PAUL PANCKHURST

On this week's market agenda: a blast of Bollard, an update from a clothes retailer - and the next instalment in the story of the company with a mountain of cash and a single employee.

Money markets expect Reserve Bank Governor Alan Bollard to fire off the first of a series of interest rate rises when he delivers the bank's quarterly update of its economic forecasts on Thursday.

But many economists, mindful of the dollar's unrelenting rise, think he will wait until next year.

Deutsche Bank, for example, says the latest data shows Bollard can afford to wait.

"Net migration appears to be slowing, business sentiment is stagnating at average levels and producer price inflation has remained low."

Deutsche forecasts, however, that Bollard will deliver "a firm message", emphasising concern about the continued strength of the housing market and inflation risks.

Also on Thursday, Hallenstein Glasson Holdings chairman Warren Bell will give shareholders a steer on where the clothes retailer is heading.

The company's bottomline profit for the year to August 1 was $11.46 million - almost exactly the same as the previous year - on turnover of $177 million in a market described as heavy on "aggressive discounting".

Shareholders at the annual meeting in Auckland will be keen to hear more about the Australian operations, after the company closed its Hallensteins menswear stores in that country.

Managing director Cliff Kinraid said the last remaining Hallensteins store was converted last month to an outlet for women's budget fashion chain Glassons.

The firm now has 15 Glassons stores in Australia and about 90 outlets in New Zealand for Hallensteins, Glassons and HBK Girl.

INL's takeover offer for Sky Network Television expires on Friday.

INL is the company with one employee - company secretary Sean Wynne - and a mountain of cash, after selling its publishing assets to Fairfax.

Telecom accepted INL's cash and shares offer for its 10 per cent stake in Sky, pushing INL to 78 per cent.

So far it has got no further.

Wynne said institutions would not usually be expected to sell into such an offer until the last day.

The offer was described as doomed after Deloitte Touche Tohmatsu and independent directors Barrie Downey and John Hart said it was bad for shareholders.