Weaker kiwi helps lift exporters F& P Healthcare, A2 Milk

ew Zealand shares rose as Fisher & Paykel Healthcare led gains among companies that benefit from a weaker kiwi. Ryman Healthcare and Arvida Group led retirement village operators lower on concern the new government’s policies may sap demand.

The S& P/ NZX 50 index rose 5.48 points, or 0.1 per cent, to 8129.55. Within the index, 19 stocks rose, 25 fell and six were unchanged. Turn- over was $ 221 million.

The market partly recovered after a broad selloff yesterday morning after the announcement that New Zealand First and Labour will form the new Government with support from the Greens. Among points of agreement is to reduce net migration, a move likely to take some pressure off a housing market that is already showing signs of having come off its peak.

F& P Healthcare, which gets much of its sales in foreign currencies such as the greenback, rose about 4 per cent to $ 13.34 as the kiwi dollar dropped below US70c. A2 Milk, which counts Australia as its biggest market, gained 1.5 per cent to $ 7.99, while its production partner, Synlait Milk, rose 2.1 per cent to $ 7.96. The kiwi fell to an 18- month low against the Aussie dollar.

“Exporters have benefited from the New Zealand dollar falling,” said Shane Solly, a director at Harbour Asset Management. Ryman Healthcare fell 4.1 per cent to $ 9.19, Arvida declined 3.3 per cent to $ 1.18, Metlifecare dropped 2.5 per cent to $ 5.88 and Summerset Group fell 2.4 per cent to $ 4.96.

Solly said the reaction in the stock market to the new Government “is pretty consistent with the policies that have been rolled out so far”. Yes- terday’s decline for the aged- care sector amounted to “a small pullback” after a period of strong gains. More broadly, though, the outlook for retirement villages remains strong, Solly said.

Both the global and the domestic economy were still in reasonable shape and the New Zealand political environment was still moderate.

Westpac Banking Corp rose 2.6 per cent to $ 37.69 and Australia & New Zealand Banking Group gained 1.9 per cent to $ 34.35. Ebos Group, which counts Australia as its largest market, gained 2.3 per cent to $ 17.90. Among companies whose fortunes are tied to global trade and the benefits of a weak dollar, Port of Tauranga rose 0.2 per cent to $ 4.47 and Mainfreight gained 0.4 per cent to $ 25.55.

Chorus rose 1.5 per cent to $ 4 and New Zealand Refining gained 1.2 per cent to $ 2.53. Contact Energy rose 1.8 per cent to $ 5.65, with 6.3 million shares changing hands.

SkyCity Entertainment Group rose 0.3 per cent to $ 3.82.

Sky Network Television fell 4.3 per cent to $ 2.67, Freightways fell 2.4 per cent to $ 7.43 and Spark New Zealand declined 1.9 per cent to $ 3.69. Air New Zealand fell 1 per cent to $ 3.40.

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