3 mins to read

Market close: NZ shares drop, F&P Healthcare falls amid talks with analysts

New Zealand shares fall, led by Fisher & Paykel Healthcare, as the company meets analysts to discuss its annual results and an outlook that has disappointed some investors.

Mon, 28 May 2012

BUSINESSDESK: New Zealand shares fell, led by Fisher & Paykel Healthcare, as the company met analysts to discuss its annual results and an outlook that has disappointed some investors. 

Rakon bounced back from its lowest level this year.

The NZX 50 Index rose 23.97 points, or 0.7%, to 3462.25. Within the index, 30 stocks fell, 16 rose and four were unchanged.

Turnover was $102 million on a day when US markets will be closed for the Memorial Day holiday.

F&P Healthcare, which makes breathing masks and gets more than 50% of sales in US dollars, fell 4.8% to $2.18.

Last week it posted an annual profit gain that was inflated by a one-time tax charge in the previous year. Profit of $64.1 million is within the $62 million to $70 million range it has forecast for 2013.

"Fisher and Paykel Healthcare has been out their presenting to analysts again - our analyst hasn't downgraded it too far but I am picking someone else has," said Greg Easton, investment adviser at Craigs Investment Partners.

Fisher & Paykel Appliances, once part of the same group as the healthcare company, fell 3.7% to 52 cents.

Xero rose 3.8% to $4.15 after the cloud-based accounting system launched a new payroll service for Australian customers after buying the Paycycle business last year for $A1.5 million in stock and cash.

Chief executive Rod Drury said the new offering was “the most significant development for Australian customers” since Xero launched there in 2008.

"Its potential is huge," Mr Easton said. "The people who are interested are the ones using it - they can see its potential."

Energy Mad jumped 10$ to 55 cents after the energy efficient light bulb maker posted an annual loss of $1.1 million, falling short of the $2.1 million profit forecast in last year's initial public offering documents.

The company expects stronger growth in 2013 after securing an agreement to supply US drug store giant Walgreen.

Shares in AWF were unchanged at $2.50 after the contract labour company said it plans to buy back as much as 1.9% of its outstanding shares in preparation of an executive incentive scheme.

It expects to announce details of the senior management share scheme within the next month.

NZ Oil & Gas was changed at 76 cents after the oil and gas explorer said it will take a 60% interest in the Kaheru onshore prospect in Taranaki, partnering with Canada's Tag Oil.

The partnership is assembling a suite of drilling options to attract drilling partner in New Zealand in 2013 or 2014.

Shares in Comvita extended their rally, climbing 7.9% to $3.40 in trading today. The stock has surged 17% since posting a record annual profit of $8.2 million last week, the top end of its November forecast range.

Construction company Fletcher Building fell 0.2% to $6.14 and building supplies manufacturer Steel & Tube fell 0.5% to $2.18 after Finance Minister Bill English said last Friday's 5.2 magnitude earthquake in Christchurch may further the city's rebuild if insurers' confidence is dented.

Shares in local insurer Tower fell 0.6% to $1.63.

Argosy Property shares fell 1.7% to 84 cents after the property investor said its portfolio increased 0.4% to $905.2 million in the past year.

Last week the company said its annual distributable earnings were flat at $33.4 million, and it expects to keep its 2013 dividend payment at six cents per share.

Delegat’s Group, the wine maker and contract grape buyer, rose 0.8% to $2.50.

"There has been strong interest and it’s an exporter as well - so if it’s a good product it does sell," Mr Easton said, referring to Delegat's.

"The volume hasn't been high but it has been creeping up since it announced its result.”

© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Market close: NZ shares drop, F&P Healthcare falls amid talks with analysts