A2 Milk continues rise to fresh record

F&P Healthcare also hits new high on mixed day for sharemarket

New Zealand shares were mixed with exporters A2 Milk Co and Fisher & Paykel Healthcare hitting record highs as a weaker New Zealand dollar boosts their overseas earnings, while CBL Corp dropped amid a gloomy outlook for insurers.

The S&P/NZX 50 Index increased 0.22 points, or 0.003 per cent, to 7851.75. Within the index, 25 stocks fell, 16 rose and nine were unchanged. Turnover was $136 million. The New Zealand dollar fell from a month-high as concerns about the greenback faded after Hurricane Irma’s impact was not as bad as initially feared and as North Korea did not spook investors with more weapons testing.

A weaker currency tends to boost demand for exporters as it increases the value of their overseas sales.

rose 3.6 per cent to $6.12, a fresh record, and led

A2 Milk

the market higher.

The milk marketer released a presentation from an investor conference in Hong Kong, having pitched to London investors last week, and reiterated the board was evaluating capital management alternatives and was open to a special dividend depending on progress of its planned $40m on-market share buyback, which it will launch in the next year, and future market conditions.

The prospect of a special dividend was first raised last month when the milk marketer announced it had tripled its annual profit and said it would use some of its accumulated cash to buy back shares, and might pay a special dividend.

The company’s shares have gained 18 per cent since then, and are up 177 per cent this year.

Fisher & Paykel Healthcare,

another exporter, advanced 1.7 per cent to $12.82, an all-time high.

gained 2.1 per cent to $26.95 and is up 51 per cent this year.

“We might see a slightly more complicated tax backdrop if we get a change of government, that would presumably be a positive for Xero — they’re an exporter as well, which is another theme that

Xero

has been in vogue,” said Mark Lister, head of private wealth research at Craigs Investment Partners.

CBL Corp

was the worst performer, down 4.3 per cent to $2.92, the lowest it has closed since August 2016.

On Friday, the stock gave up rights to a 1.5c-a-share interim dividend.

“They’ve obviously had a bit of a difficult time of things lately, they had a poor month in August and there was a trading update that wasn’t so good,” Lister said.

“Now you’ve got insurance companies around the world getting sold off because of the storms and earthquakes you’ve seen, so I think it’s been dragged down in line with those.”

Retirement ators fell,

village with down 1.8 per cent to $8.96, dropping 1.3 per cent to $5.87 and

declining 0.6 per cent to $4.97.

“They all had a pretty difficult week last week as well, Summerset and Ryman posted good results last month but again there’s political risk,” Lister said.

“These companies benefit from rising house prices, so maybe there’s a bit of caution creeping in.”

Healthcare Metlifecare merset

oper-

Ryman Sum-