Stocks to watch on the Australian stock exchange on Wednesday, Jan 28:

CAB – CABCHARGE – down five cents, or 1.1 per cent, at $4.38

The Western Australian Government’s plan to cap taxi payment fees at five per cent could cost the sector’s dominant player, Cabcharge, about $4 million a year.

FMG – FORTESCUE METALS GROUP – down five cents, or 2.35 per cent, at $2.08

Shares in iron ore producer Fortescue Metals Group briefly fell below $2 after the price for iron ore dropped to a new five and a half year low.

FUN – FUNTASTIC – down 0.4 cents, or 13.3 per cent, at 2.6 cents

Toys, sporting goods and confectionery distributor Funtastic expects a loss in earnings for the first half of its fiscal year, partly because of slower international sales.

QAN – QANTAS AIRWAYS – up four cents, or 1.7 per cent, at $2.38

Qantas is enjoying the benefits of low oil prices but the airline has no plans to pass the windfall on to all passengers.

The airline’s largest shareholder, Franklin Resources, has sold down its stake in the airline for the third time since early December.

RMS – RAMELIUS RESOURCES – steady at 13.5 cents

Gold miner Ramelius has lifted its full year production guidance after achieving record production in the December quarter.