Solid F&P result helps lead shares up

Few surprises in reports says analyst, as season winds up

New Zealand shares rose, led higher by Fisher & Paykel Healthcare on a modest increase in forecast earnings. Port of Tauranga rose as record cargo volumes underpinned its profit gain.

The S&P/NZX 50 Index advanced 113.01 points, or 1.1 per cent, to 10,626.17. Within the index, 24 stocks rose, 23 fell, and three were unchanged. Turnover was $120.7 million.

Salt Funds Management managing director Matt Goodson said a number of blue-chip stocks bounced back yesterday from Tuesday’s MSCI index reweighting which had “more downs than ups” and was out of step with recent reweightings.

F&P Healthcare led the market higher, up 6.1 per cent at $16.07. The breathing mask respirator maker increased its annual earnings forecast by $5m to $245-$255m on the assumption of a weaker kiwi dollar.

Meridian Energy, the country’s biggest listed company, climbed 4.8 per cent to $5.03, while Auckland International Airport — the NZX’s second-largest stock — rose 4.2 per cent to $9.59. Port of Tauranga was up 2.1 per

cent at $6.25 after reporting a 6.7 per cent increase in annual profit on record cargo volumes.

Scales Corp fell 0.7 per cent to $4.50 after reaffirming annual guidance.

Genesis Energy fell 1 per cent to $4.30 after reporting a 16 per cent increase in underlying earnings The domestic earnings season is coming to a close at the end of the week. Goodson said it’s largely met expectations, with domestic-focused companies exposed to the economic cycle such as Fletcher Building and Freightways reporting flat results. Freightways rose 0.8 per cent to $8.01.

Fletcher posted the day’s biggest decline, down 2.7 per cent, or 12 cents, at $4.32. However, it shed rights to a 15 cent dividend. Contact Energy fell 2.4 per cent, or 20 cents, to $8.28 after shedding rights to a 23 cent dividend.

A2 Milk dropped 2.2 per cent to $14.11. ASX-listed rival Bellamy’s Australia reported weaker sales and earnings for the 2019 financial year, which Goodson said weighed on investor sentiment for A2.

Sky Network Television was the most traded stock on a volume of 7.9 million shares, more than 13 times its 90-day average of 588,000. The stock fell to a record low $1.08 and closed at $1.13, down 0.9 per cent.

Refinitiv data show three major trades at the close of trade — 3.6 million, 1 million and 1.1 million shares — at $1.13 a share. Spark New Zealand decreased 0.3 per cent to $4.38 and Air New Zealand was up 0.4 per cent. Chorus increased 0.2 per cent to $5.03. Outside the benchmark index, Allied Farmers was unchanged at 68 cents after reporting a decline in annual earnings of about 10 per cent. NZ Windfarms rose 2.1 per cent to 14.9 cents after returning to profit. Tower rose 1.4 per cent to 74 cents on an unusually large volume of 3.5 million shares, its biggest day since March 15.

Insurance Australia Group’s 2043 notes paying annual interest of 5.15 per cent were the most traded debt security on a volume of 340,000. The notes rose 9 per cent to $1.07 per $1 face value.