MARKET CLOSE: NZ shares fall, F&P Healthcare, Westpac decline

New Zealand shares fell, paced by Fisher & Paykel Healthcare and Westpac Banking Corp as a drop in Australia's listed healthcare sector weighed on the local bourse. Air New Zealand rose.

The NZX 50 Index fell 13.355 points, or 0.2 percent, to 5738.404. Within the index, 29 stocks fell, 16 rose and five were unchanged. Turnover was $137.6 million.

Across the Tasman, listed-medical device maker ResMed shares dropped 19 percent to A$6.70 in afternoon trading after it revealed a major clinical trial into its sleep therapy products for heart attack victims actually increased their risk of dying. The negative sentiment flowed through to dual-listed F&P Healthcare, the breathing apparatus manufacturer and exporter, which dropped 1.9 percent to $6.22 on the NZX.

"It has tainted Fisher & Paykel Healthcare, although it isn't in that area and has no plans to move into that area," said Shane Solly, director at Harbour Asset Management. "The sentiment has flowed through from ResMed to healthcare."

Across the Tasman the S&P/ASX 200 Index was down 0.7 percent in afternoon trading. The four big banks are at the start of a capital raising spree as they look to bolster their balance sheets in the face of incoming regulation. Dual-listed Westpac declined 1.9 percent to $35.30, while Australia and New Zealand Banking Group fell 0.7 percent to $35.55.

"That banking sector is still under real pressure in Australia," Solly said.

Diligent Board Member Services, the governance software firm, led the benchmark index lower, down 3.8 percent to $5.37. Earlier this week the company reported a 14 percent increase in first quarter adjusted earnings before tax, depreciation and amortisation, of US$7.73 million. However, its cash and cash equivalents dropped US$5.6 million in the period to US$65.2 million after delays in invoicing as the company switched to a new system.

Air NZ, the national carrier, advanced 2.6 percent to $2.90. Qantas, its Australian rival, reported up to A$550 million saving on its annual fuel bill as lower global oil prices lower its input costs.

"Certainly the business continues to operate very well," Solly said. "Qantas came out with a positive profit announcement a few days ago, and the Qantas stock price rallied, so maybe some people are looking through that and suggesting that conditions are still obviously positive for New Zealand."

Ryman Healthcare fell 0.6 percent to $8. Summerset Group Holdings declined 1.2 percent to $3.42.

Spark New Zealand, formerly Telecom Corp, rose 0.4 percent to $2.87. Fletcher Building, the construction and building supplies firm, gained 0.4 percent to $8.65.

(BusinessDesk)