F&P Healthcare leads shares higher

Broker says investors really taking to the stock

New Zealand shares rose, as Fisher & Paykel Healthcare extended its run after raising earnings guidance on Monday on an earlier than expected US regulatory approval.

The S&P/NZX 50 Index increased 18.74 points, or 0.2 per cent, to 11,045.34. Within the index, 23 stocks rose, 18 fell, and nine were unchanged. Turnover was $163.8 million.

F&P Healthcare rose for a third day, up 2.6 per cent at $18.79 on a volume of 1.3 million shares, more than its 90-day average of 545,000. The breathing mask manufacturer hit a record $19.05, adding to Monday’s rally when it said profit would rise by as much as 26.8 per cent in the March 2020 year. Its Viterra mask received US approval earlier than expected.

“They’re pretty much a worldleader, and it’s particularly good for a New Zealand company to be doing so well in that space, especially in the large American market,” said Grant Williamson, a director at Hamilton Hindin Greene. “The market is really liking that stock and the buying continues to push that price up.”

Retirement village operator Arvida Group led the market higher, up 3.4 per cent at a record $1.54 on a volume of 249,000 shares, less than half its 678,000 average.

Retirement village stocks were stronger after Real Estate Institute figures showed house price inflation picked up in September. Metlifecare was up 2.3 per cent at $4.55 and

Summerset Group rose 1.5 per cent to $6.80. Ryman Healthcare advanced 1.2 per cent to $13.46 on a volume of 2.8 million shares.

“House prices do influence those stocks on the market because if house prices are going up and the villages are turning over villas, they’re selling them at that higher price,” Williamson said.

Ebos Group rose 0.4 per cent to $25 after the health and animal care products maker extended its reach into medical devices with a A$34m ($36.5m) acquisition. Williamson said the company has been very good at making bolt-on acquisitions.

Sky Network Television was the most traded stock with a volume of 3.8 million, well up on its 1 million average. The shares were unchanged at $1.06, having whipped back and forth over the past week when the pay-TV operator lost the domestic cricket broadcasting rights but subsequently retained rugby.

Spark, which emerged as an aggressive rival to Sky for sports broadcasting rights, fell 1.4 per cent to $4.445. Of other stocks trading on volumes of more than a million shares, Fletcher Building fell 1.7 per cent to $4.60, and Mercury NZ increased 0.4 per cent at $5.52.

Infratil was the worst performer, down 2.3 per cent at $5.03. The infrastructure investment firm showcased its Vodafone NZ and Canberra Data Centres investments at a briefing for investors in Sydney yesterday.

Outside the benchmark index, Marsden Maritime Holdings

increased 1.9 per cent to $5.81 on a volume of just 738 shares. The partowner of Whangarei’s Northport held its annual meeting yesterday, where chair Murray Jagger was optimistic about its outlook.