MARKET CLOSE: NZ stocks rise, F&P Healthcare reaches record as Labour seen weakening kiwi

Sunday 10th September 2017

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New Zealand shares rose, with Fisher & Paykel Healthcare edging up to a record on speculation the kiwi dollar would weaken under a Labour-led government, providing a boon to companies with offshore sales. A2 Milk and Mainfreight added to the benchmark index's gains.

The S&P/NZX50 Index rose 47.27 points, or 0.6 percent, to 7,851.53. Within the index, 24 stocks gained, 18 fell and eight were unchanged. Turnover was a lighter than average $116 million. The kiwi fell late yesterday, although it is up on the week, after the latest Colmar Brunton poll showed National down 2 points to 39 percent and Labour unchanged on 43 percent, while Labour’s Jacinda Adern leads National’s Bill English as preferred prime minister by 34 percent to 33 percent.

"As we move towards the actual election day and polls indicate the possibility of Labour getting in, people are starting to form views on different aspects such as the currency," said Rickey Ward, New Zealand equities manager at JBWere New Zealand. "We've seen pockets of strength in companies favourably exposed to a weaker New Zealand dollar."

F&P Healthcare, which gets almost 50 percent of its sales in North America, got as high as $12.62 before the close and ended the day up 0.9 percent to an all-time high close of $12.61. A2 Milk, the milk marketer that's enjoyed strong sales growth in Australia and China, rose 1.9 percent to $5.91. Mainfreight, which has transport and logistics operations across the globe, rose 0.5 percent to $24.58.

Auckland International Airport led the market higher, rising 2.6 percent to $6.60. Trustpower rose 1.9 percent to $5.45 and Vista Group International increased 1.8 percent to $5.55.

Briscoe Group rose 1.4 percent to $3.75 after the homeware and sporting goods chain lifted first-half profit 4.8 percent to $28.6 million even as margins shrank in the face of unseasonable winter weather conditions and heightened competition. The result was just north of the retailer's forecast for earnings of $28 million.

New Zealand Oil & Gas fell 2.8 percent to 68.5 cents after a rival bid emerged for partial control of the energy explorer and producer. Cornerstone shareholder Zeta Resources formally lodged its partial takeover offer of 72 cents apiece for the 42 percent of shares it doesn't already own, something NZOG's independent directors are inclined to reject as too cheap. The company has received an indicative partial bid by minority shareholder OG Oil & Gas at 77 cents share, which the independent directors will assess when they have more information.

Kathmandu Holdings rose 1.8 percent to $2.27, Scales Corp increased 1.8 percent to $3.41 and Trade Me Group gained 1.8 percent to $4.59. Spark New Zealand rose 1.4 percent to $3.91. Australia & New Zealand Banking Group was the biggest decliner on NZX 50, falling 1.4 percent to $31.80. (BusinessDesk)

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