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BusinessDesk: Stocks to Watch: Comvita, Kiwi Income Property Trust, New Zealand Wool Services International, Renaissance Corp, SmartPay, Telecom

BusinessDesk: Stocks to Watch: Comvita, Kiwi Income Property Trust, New Zealand Wool Services International, Renaissance Corp, SmartPay, Telecom

The following stocks may be active on the New Zealand exchange after developments since the close of trading. All prices are in New Zealand dollars unless specified.

Themes of the day: The Reserve Bank kept the official cash unchanged at 2.5% today, and said any increases would be ‘in the next year or so’ as he evaluates the impact of global economic turmoil,. despite the improving local data and rising inflationary pressures. Global equities gained amid signs that European policy makers were closer to implementing a euro bond, a measure viewed by the market as a key tool to tackling the region's sovereign debt crisis.

Comvita Ltd. (CVT): The manuka honey wound care manufacturer says first-half profit will be the best in at least two years, and is pointing to an annual profit of as much as $8.2 million after last year’s slump. The Te Puke-based company expects to post a profit of $2.1 million on $41 million of sales in the six months ended Sept. 30, beating the same performance in the past two years. CVT shares rose 18.6$% yesterday to $2.10.

Kiwi Income Property Trust (KIP): The country's biggest real estate investment vehicle announced it has opened a new foodcourt and dining lane at Centre Place Shopping Centre in Hamilton, following the successful completion of a $10 million upgrade that commenced in April this year. KIP shares fell 0.5% yesterday to $1.03.

New Zealand Wool Services International Ltd. (WSI): Wool Equities Ltd. principals and investors announced today they are seeking $40 million to acquire WSI in a challenge to a Cavalier Corp. group which is bidding for the wool scourer. The deal would see it acquire the 64% stake in WSI held by the receiver of two Allan Hubbard-associated companies Plum Duff Ltd. and Woolpak Holdings. WSI shares were unchanged yesterday at 52 cents.

Renaissance Corp. (RNS): Shares in the electronics and computer retailer surged 18.2% yesterday to 13 cents after the said it received an approach to buy its distribution business. The company said it hadn’t yet received a formal offer for Renaissance Ltd., which accounted for about 56% of the group’s $102 million of sales in the six months ended March 31, but would sell the business if the price was right.

SmartPay Ltd. (SPY): The eftpos provider has achieved Australian certification for use of its proprietary retail payment terminals by Westpac Bank, the first in a string of acceptances required for the kiwi company to grab a larger share of the Australian EFTPOS terminal market. SPY shares rose 16% yesterday to 14 cents.

Telecom Corp. (TEL): The country’s biggest phone company received approval from holders of two issues of British pound-denominated bonds to exchange the securities for notes in its Chorus once New Zealand’s biggest phone company is split in two. TEL shares were unchanged yesterday at $2.51.

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