NZ stocks: Time running out for fine-tuning those forecasts

As reporting season approaches, time is running out for listed companies which need to adjust the market perceptions of their numbers.

Continuous disclosure compels companies to tell the market if they are aware of inaccurate profit or loss forecasts in the public arena - and as results begin to dribble in, so will any upgrades or downgrades.

This reporting season is for companies with June 30 or December 30 balance dates and is the busiest (along with the August one for the same balance dates) for the stock exchange.

Companies must give the exchange a preliminary announcement within 60 days of their balance date, and an annual report within three months of the balance date.

This season, 45 companies are reporting their full-year and 91 their half-year results.

At a special meeting for Tower shareholders tomorrow the company will seek approval to spin off its Australian money management unit.

The plan needs court approval and 75 per cent shareholder support.

Tower wants to transfer financial planner Bridges and money manager Tower Trust into a new company that will be listed on the Australian stock exchange - Australian Wealth Management. In exchange, Tower gets 120 million AWM shares and A$130 million ($140 million).

The A$130 million will come from a renounceable rights offer of additional AWM shares. This will be underwritten by GPG, which owns 19.9 per cent of Tower.

Of Tower's other 117,000 shareholders, about 80,000 are New Zealanders. No others hold more than 5 per cent. The insurer plans to list the new company on the Australian Stock Exchange on February 15.

Longer term, First NZ Capital strategist Jason Wong is expressing concerns about the currency effect on exporting companies this year.

He is picking the kiwi to weaken to 63USc but still has reservations about investing in the net exporters.

"As favourable hedges roll off, exporters may still face an effectively higher dollar," Wong said.

"Thus, the lagged impact of a strong currency will still be negative for most net exporters through much of 2005."