NZ stocks: Debut for First NZ Capital starts week

By ELLEN READ

A new broking firm comes into play today with the launch of First NZ Capital - the result of a management buyout of Credit Suisse First Boston's local institutional broking and investment banking operations.

First NZ Capital is owned and managed by former staff of CSFB and is headed by Bill Trotter, CSFB's former New Zealand chief executive.

The firm will retain a strategic alliance with CSFB, enabling it to provide a full range of investment banking and institutional equities services in New Zealand.

"This is a great opportunity for our NZ team to own and develop what continues to be a very successful franchise," Trotter said.

"We will continue to provide both global and local full service capabilities to our clients. In terms of our day-to-day operations, it will be business as usual for all concerned."

First NZ Capital will work closely with the recently restructured CSFB retail business, First NZ Securities.

Launches and new names aside, Thursday is the busiest day for the stock market this week, with Lion Nathan unveiling its first-half result and Restaurant Brands holding its annual meeting.

Lion Nathan's chief executive Gordon Cairns said last month that he expected the group to post an increase in net profit for the year to about A$160 million ($193 million).

Last November the firm reported a net profit after tax of $A151.8 million ($183 million), which was broadly in line with expectations.

The Australasian brewer and winemaker expects to show a loss of A$14.3 million ($17.2 million) on its China operations this financial year, improving on a A$19.3 million ($23.3 million) loss a year earlier.

Restaurant Brands' annual meeting is likely to be a good news event, given the company's recent strong run and strong interest from institutional funds.

The firm's share price has gone from about $1.40 to over $2 in the last 12 months - although it has come under pressure in recent days after news that AMP Private Capital had sold an 8.7 per cent stake - almost half its holding - to a range of institutional buyers.

Wednesday's Reserve Bank monetary policy statement is expected to lift the official cash rate by 25 basis points. The market is unlikely to react sharply, but higher rates will not please the retail and construction sectors, which traditionally suffer when interest rates rise.