Why Are These 6 Stocks Turning Heads On NZX-NZR, MCK, KPG, FCG, WDT, SVR?

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Summary

  • The New Zealand Refining Company disclosed financial assistance to its employees through a Scheme.
  • Kiwi Property Group has entered a strategic alliance with Tainui Group Holdings to acquire properties in Hamilton CBD.
  • Fonterra Co-operative announced the sale of its two farming hubs to Youran, generating proceeds of $552 million.

New Zealand is one of the few countries across the globe that has tackled the pandemic quite effectively through cautious approach and effective preventive measures. With the timely lockdowns and restrictions, along with subsequent easing out of the same, the total size of the NZ economy boasts of $322 billion, as noted in December 2020.

Moreover, on 1 April 2021, NZ government increased the income levels of its countrymen, benefitting around 1.4 million people across the nation, Kiwis are now more equipped to invest and trade in various stocks.

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Let us now look at the 6 NZX stocks, which are buzzing with the latest updates and keeping the investors glued to the NZX Board.

The New Zealand Refining Company Limited

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The New Zealand Refining Company Limited (NZX:NZR) announced financial help for its employees under the Company’s Scheme (Employee Share Purchase Scheme).

As per the scheme, 590,916 ordinary shares, worth $1,001 shares, valued at $0.4675/share have been offered to the participating employees w.r.t. FY20. In lieu of this, $1 will be subtracted as employee's contribution from their payouts. The remaining cost i.e. $1,000 will be funded by the Company.

Moreover, a trust has been formed under the Scheme, for the acquisition of shares either through NZX or by way of Company’s issuance and keeping them until they are withdrawn from the Scheme by the said employees.

On 6 April, The New Zealand Refining Company ended the day's trading session, up by 1.08% at $0.470.

Millennium & Copthorne Hotels New Zealand Limited

Millennium & Copthorne Hotels New Zealand Limited (NZX:MCK) announced that it would not be going ahead with the proposed purchase of land in central Whangarei for its hotel development.

It is pointed out that MCK had entered into an agreement in 2019, with the Whangarei District Council for the purchase of land, but considering the present uncertainties caused by the pandemic, it will not proceed further with the agreement.

On 6 April, Millennium & Copthorne Hotels ended the day's trading session, up by 7.46% at $2.450.

Kiwi Property Group Limited

Kiwi Property Group Limited (NZX:KPG) recently published that it will enter into a JV with Tainui Group Holdings over Centre Place North and its neighbouring properties, thus, standing out in Hamilton’s CBD.

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As per the agreement:

  • Both KPG and TGH would have equal stakes in the joint venture.
  • It will include properties worth $71 million comprising of Centre Place North, 61-65 Bryce Street, 511-523 Victoria Street, and an area at 10 Ward Street.
  • Pre-paid rent will be provided by TGH on a new, 100-year ground lease.

Clive Mackenzie, KPG’s CEO opined that through this agreement, Centre Place North, given its prime location in Hamilton CBD, would offer irresistible deals in retail, residential and office spaces.

On 6 April, Kiwi Property Group ended the day's trading session, up by 0.41% at $1.235.

Fonterra Co-operative Group Limited

Fonterra Co-operative Group Limited (NZX:FCG) of late, completed the sale of its 2 Chinese farming hubs in Ying and Yutian to Inner Mongolia Youran Dairy Co., Ltd, with sale proceeds amounting to $552 million.

Miles Hurrell, FCG's CEO, remarked about Fonterra's immense contribution to the development of the dairy industry in China, plus its continuous focus on the growth of Greater China Foodservice, Consumer, and Ingredients’ business operations.

On 6 April, Fonterra Co-operative ended the day's trading session, down by 1.84% at $4.790.

Wellington Drive Technologies Limited

Wellington Drive Technologies Limited (NZX:WDT) recently witnessed a change in its executive team. Steve Hodgson, WDT’s Senior Vice President Sales & Business Development, would step down from his position after serving 12 years in the Company.

However, Hodgson would continue to assist in the transition process till a new CEO has been appointed.

On 6 April, Wellington Drive Technologies ended the day's trading session, down by 4.44% at $0.086.

Savor Limited

Savor Limited (NZX:SVR) has declared the successful completion of its rights issue, wherein 20,585,293 shares amounting to $3.6 million were brought by shareholders and 13,370,560 shares amounting to $6 million are to be underwritten.

The funds thus received, would be utilised towards the acquisition of the three renowned Hipgroup venues- the Amano, Ortolana and The Store and to further build up the Company’s balance sheet. Presently, SVR boasts of ~$7 million as cash on hand for future growth and developments.

On 6 April, Savor ended the day's trading session, up by 2.44% at $0.210.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

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