MARKET CLOSE NZ shares edge up; F and P Healthcare helped by weak kiwi

New Zealand shares rose, led by Fisher & Paykel Healthcare, as the maker of breathing masks and respirators benefited from a kiwi dollar at a two-month low. NZX rose to a six-year high in anticipation of fees from new listings.

The NZX 50 Index edged up 0.5 percent, or 0.01 percent, to 4646.32. Within the index, 25 stocks rose, 20 fell and nine were unchanged. Turnover was $161 million.

The New Zealand dollar has dropped 4 percent so far this month, trading below 82 US cents in the past two days. That benefits companies that get sales in US dollars because it translates into more kiwi dollars when they bring it home.

F&P healthcare, which gets more than 50 percent of its sales in US dollars, rose 4.8 percent to $2.82, a two-year high.

“There’s been quite a significant pullback in the currency since the beginning of May,” said Paul Harrison, head of equities at BT Funds Management. F&P Healthcare “is significantly leveraged to their US earnings.”

Specialty chemicals maker Nuplex Industries rose 1.9 percent to $3.28.

NZX, the stock market operator, gained 1.5 percent to $1.39, the highest since July 2007, even after shedding its 1.25 cent interim dividend. Among companies eyeing a share market listing are Synlait Milk, SLI Systems, Wynyard Group, Serko and Z Energy, and the government is expected to announce in the Budget on Thursday that Meridian Energy will be the next state-owned power company to be sold this year.

“Listings and annual revenue from companies is a significant part of their business,” Harrison said.

MightyRiverPower rose 2 percent to $2.56 and was again the most heavily traded stock on the exchange by value, following its listing last Friday. The shares are now 6 cents above the initial public offering price.

Of its two main listed rivals, Contact Energy fell 0.2 percent to $5.46 and TrustPower rose 0.3 percent to $7.42, having announced today the acquisition of the assets of Wanganui council owned Energy Direct New Zealand for $13.7 million.

Goodman Property Trust rose 0.4 percent to $1.165 after announcing the first increase in the value of its portfolio since 2008, which contributed to a 92 percent jump in annual profit.

Warehouse Group, the biggest retailer on the NZX 50, fell 3.3 percent to $4.16. Westpac Banking Corp, which is ex-dividend for its 86 cent interim dividend and 10 cents special dividend, fell 3.2 percent to $38.10 on the NZX.

Sky Network Television rose 1.5 percent to $5.55 and SkyCity Entertainment Group fell 1.3 percent to $4.42.

Telecom shed 2.1 percent to $2.62 and Fletcher Building gained 1.1 percent to $8.70.

(BusinessDesk)