F&P Healthcare leads NZX 50 to record
A2 Milk remains volatile, takes a fall after previous gains
New Zealand shares rose, pushing the S&P/NZX 50 Index to a record, as Fisher & Paykel Healthcare extended its gains and investors picked up stocks carrying a dividend payment including Ryman Healthcare, Mainfreight and Arvida Group.
The NZX 50 rose 56.41 points, or 0.6 per cent, to 8,813.45. Within the index, 24 stocks rose, 19 fell and seven were unchanged. Turnover was $165 million. F&P Healthcare rose 3.5 per cent to $14.40, bringing its gains the past week to about 10 per cent. On May 28 the company posted a record profit of $190.2m and said it would beat that in the current year even while planning increased capital ex- penditure. The company sheds its final dividend of 12.5 cents a share on June 21.
“There was some scepticism about (Healthcare’s) growth prospects and expenditure but investors have got their heads around the fact that it is investing for growth,” said Peter McIntyre, an investment adviser at Craigs Investment Partners. “It’s an easily understood, long-term story. A quality company.”
Ryman, which pays a 10.9 cent final dividend today, rose 2.1 per cent to $11.94. Among the other retirement village operators, Metlifecare gained 3.2 per cent to $6.22. Arvida, which goes ex-dividend for a 1.56 cent final
payment on June 12, rose 1.6 per cent to $1.30. Mainfreight fell 1.2 per cent to $27.38. The transport company sheds its final dividend of 26 cents on July 12.
A2 Milk fell 0.9 per cent to $10.90, having been among the leading gainers on Tuesday. The milk marketer has fallen from a peak of $14.62 in late February on concern about increased rivalry in the Chinese market and on disappointment margins haven’t grown as fast as sales.
Synlait Milk fell 2.2 per cent to $10.90.
Kathmandu declined 1.7 per cent
to $2.38. Fletcher Building rose 1.7 per cent to $6.69
NZX fell 0.9 per cent to $1.12 after the market operator’s monthly metrics showed share trading continued to rise in May. Year-to-date the total number of trades is up 79 per cent to 1.3 million and the total value traded is up 5.3 per cent to $17 billion, NZX said yesterday.