NZ shares rise as a2 Milk hits new record
New Zealand shares rose for a second day as a2 Milk reached a record following its strong earnings on Wednesday and Fisher & Paykel Healthcare jumped on the end of a costly, long-running patent dispute.
The S&P/NZX50 index climbed 51.37 points, or 0.6 per cent, to 9300.81. Within the index, 22 stocks rose, 22 fell, and six were unchanged. Turnover was $177.5 million.
F&P Health led the market higher, rising 6.8 per cent to $14.29 on volume of 1.4 million shares, more than twice its average. The breathing-mask maker settled a long-running dispute with rival ResMed across the US, UK, Europe, Australia and New Zealand, having racked up millions of dollars in legal fees in the process. Both parties have decided to settle with no payment or admission of liability.
“Just the lawyers won with that particular battle — now sanity has prevailed, which is good,” said Grant Davies, an investment adviser at Hamilton Hindin Greene.
A2 rose as high as $14.85, a new record, and ended the session up 4.2 per cent at $14.82. Volume was bigger than usual at 2 million shares. The milk marketing firm beat earnings expectations on Wednesday and has resumed its place as the biggest listed company on the NZX, with a market capitalisation of almost $10.9 billion.
Meridian Energy, the secondbiggest listed company, rose 1.4 per cent to $3.63 on an average volume of 1.3 million shares. The electricity generator reported record earnings on Wednesday, although some investors were unnerved by weakness at Meridian’s Australian arm. Auckland International Airport,
the third-biggest listed company, increased 0.1 per cent to $7.35, with 1.8 million shares changing hands, almost twice its average volume. The airport operator reports earnings today and is expected to respond to the Commerce Commission’s concerns that it plans to overcharge customers for its major upgrade.
Pushpay climbed 4.3 per cent to $3.43 on a smaller volume than usual of 161,000 shares. Vista Group International increased 0.5 per cent to $3.94, with 1.5 million shares traded, more than seven times its 90-day average of 210,000. Spark New Zealand was the most traded stock with 9.4 million shares changing hands, compared with its 3.9 million 90-day average. The stock fell 3.7 per cent to $3.75, extending Wednesday’s decline. Sky Network
Television fell 2.4 per cent to $1.64, a new record-low, on a volume of 591,000. The pay-TV operator posted yet another slump in first-half earnings on Wednesday. Fletcher Building fell 1.6 per cent to $4.90, Heartland Group rose 1.5
per cent to $1.37, Air New Zealand fell 1.5 per cent to $2.61, Z Energy increased 1.8 per cent to $6.09, and
Precinct Properties New Zealand
decreased 0.3 per cent to $1.48. Outside the benchmark index, TeamTalk rose 3.8 per cent to 82c after affirming annual earnings will be in line with the $4.4m reported a year earlier. Dividends will also be back on the table at the end of the June financial year. NZME was unchanged at 48.5c. Rival Stuff posted a 23 per cent slide in first-half earnings, outpacing a decline in revenue, with owner Nine Entertainment Co looking to sell the New Zealand news group.
Of firms reporting today, New Zealand Refining was unchanged at $2.26, Summerset fell 1 per cent to $6.28, Cavalier was unchanged at 51c, Delegat Group rose 0.4 per cent to
$9.55, and Michael Hill International was unchanged at 56c.