Stocks to watch

Stocks of interest at the close of trading on Friday, January 23.

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IAG - INSURANCE AUSTRALIA GROUP - down 42 cents, or 5.4 per cent, to $7.30

The insurer has warned shareholders that its coffers have been hit by the hailstorms that pounded Canberra, Melbourne and Sydney this week.

IAG said it has received more than 28,000 claims of home and vehicle damage from the hailstorms and expects them to result in an unexpected pre-tax cost of $169 million.

GAP - GALE PACIFIC LIMITED - down 4.5 cents, or 17.0 per cent, to 22 cents

The marketer and manufacturer of shade and screening solutions issued a earnings warning, saying it expects to lose between $3.6 million, compared to previous guidance of a loss between $1.5 million and $1.8 million.

Gale Pacific said it had less sales in the Middle East and North Africa than anticipated, and it had make a significant provision to cover an incentive arrangement with a major customer.

OCA - OCEANIA HEALTHCARE - up two cents, or 1.6 per cent, to $1.28

The New Zealand aged care and retirement village operator reported an underlying net profit after tax of $NZ24.1 million in the six months to November 30, up 17.6 per cent from the same period in 2018.

VRL - VILLAGE ROADSHOW - up 17 cents, or 4.4 per cent, to $4.02

The theme park and cinema operator said it had received a second unsolicited, non-binding, indicative takeover proposal from a private equity group.

The proposal from BGH Capital is for $4 per share, up from the $3.90 per share indicative offer that Pacific Equity Partners made last month.

An independent committee of Village Roadshow directors are assessing the competing offers.

CIM - CIMIC GROUP - up 85 cents, or 3.0 per cent, to $28.88

Moody's and S&P Global Ratings reaffirmed the decision of Australia's largest construction and mining contractor to exit the Middle East and sell its 45 per cent stake in BIC Contracting.

While the decision will result in a one-off writedown of about $1.8 billion - and a cash outlay of $700 million to settle financial guarantees - the ratings agencies saw it as consistent with CIMIC's strategy and business positive.

LYC - LYNAS CORP - up two cents, or 0.9 per cent, to $2.36

The rare earth miner miner says it is making progress on all actions required by Malaysia to satisfy the renewal of its operating licence for its processing plant there.

Lynas said it had $85.8 million in sales revenue in the December quarter, down from $99.1 million from the first quarter, as the price for rare earth metals softened a bit.

Austrlaian Associated PressBack to Breaking News

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