MARKET CLOSE: F&P Appliances and PGG Wrightson fall, market rises

NZPA

Friday 17th December 2010

Investors punished Fisher & Paykel Appliances (NZX: FPA ) and PGG Wrightson (NZX: PGW ) for surprise profit downgrades but the market was up overall today.

Fisher & Paykel Appliances closed down 5c, to 8.77 percent, at 52 after the company lowered its full year earnings forecast due to disappointing November sales. It traded as low as 50, a level not seen since August.

PGG Wrightson shares fell to their lowest level in more than a decade after the rural service firm reduced its earnings guidance, blaming a slower than expected recovery in the agriculture sector. The price ended down 4c, or 8.33 percent, at 44c.

Despite the declines, overall the benchmark NZX-50 index closed up 31.337 points, or 0.951 percent, at 3325.114.

IG Markets said markets were mixed in Asia but the telecoms, healthcare and consumer sectors were all enjoying moderately positive sessions.

A 6c rise in Telecom (NZX: TEL ) to $2.23 helped the index as did a 9c rise in SkyCity (NZX: SKC ) to $3.32.

Fletcher Building (NZX: FBU ) managed a 1c rise to $7.73, following some big swings during the past two days in reaction to the company's hostile takeover bid for Australian company Crane Group.

Some investors consider Fletcher Building is offering too much, while others consider its bid is too low.

NZ Refining (NZX: NZR ) continued its ascent of the past few days, rising 32c early to $4.42, as analysts speculated that oil could be above US$100 a barrel in 2011 after trading in the US$75 to US$85 range for the 12 months to October.

OceanaGold (NZX: OGC ) lifted 27c to $4.80, though the speculation in that market was that year-end profit taking may take away some of the gain in the price of gold this year.

Xero (NZX: XRO ) eased a cent to $2.38 on a day it appointed Sam Knowles to its board, while TrustPower (NZX: TPW ) fell 3c to $7.30 and Port of Tauranga (NZX: POT ) was unchanged at $7.42 after changes were announced to boards.

Rakon (NZX: RAK ) rose 8c to $1.23, Infratil (NZX: IFT ) rose 6c to $1.92, APN News (NZX: APN ) rose 7c to $2.58 and SkyTV (NZX: SKT ) rose 11c to $5.25.

Freightways (NZX: FRE ) rose 5c to $3.10 and Mainfreight (NZX: MFT ) rose 12c to $7.87. Hellaby (NZX: HBY ) rose 3c to $2.06 and Cavalier Carpets (NZX: CAV ) rose 4c to $3.07.

In the United States, stocks ended higher as economic bellwether FedEx offered a bullish profit outlook in a hopeful sign for growth

The Dow Jones industrial average gained 0.36 percent to end at 11,499.25, the Standard & Poor's 500 Index rose 0.62 percent to 1242.87, and the Nasdaq Composite Index advanced 0.77 percent to 2637.31.

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