MARKET CLOSE: NZ shares rise; Chorus gains in heavy trading

BUSINESSDESK: New Zealand shares rose, as a weakening kiwi dollar lifted companies exposed to the US dollar, such as Fisher & Paykel Healthcare. Chorus, the network company spun off by Telecom, was the most-heavily traded stock and gained to a record.

The NZX 50 Index rose 18.55 points, or 0.5 percent, to 3452.36. Within the index, 19 stocks rose, 17 fell and 14 were unchanged. Turnover was $110.7 million.

F&P Healthcare, which gets more than 50 percent of its sales of breathing masks and respirators in US dollars, rose 3.9 percent to a two-month high close of $2.42. The kiwi dollar has fallen from its highs near 84 US cents in late February and was recently at 81.95 cents.

"The strong currency headwinds had stopped the healthcare brand performing," said Shane Solly, portfolio manager at Mint Asset Management.

Chorus rose 3.7 percent to $3.63, the highest since it was spun off from Telecom in November.

Telecom itself climbed 1.3 percent to $2.41, also a post-spin-off high as investors were attracted to its relatively appealing dividend yield – 12.5 percent based on its most recent payments.

Telecom "came through reporting season okay - that attractive yield is a good starting point," Solly said. “A number of our stocks are appealing for their yield perspective."

Port of Tauranga fell 0.7 percent to $10.61, having spiked to $11.94 in late February as it won business off rival Ports of Auckland. The company pays its first-half dividend of 12 cents a share to shareholders who were on the register as at March 9

The stock dropped “purely for dividend - people continue to see it in a strong position," Solly said.

Warehouse Group fell 3.2 percent to $2.71 and was the biggest decliner on the benchmark index. The retailer eased from the month-high it reached on Friday, when it posted a decline in operating margins and cut its interim dividend by 2 cents to 13.5 cents. A one-time gain lifted net profit by 3.3 percent.

"It will stake some time - the jury is still out on this one," Solly said of Warehouse.

Among other retailers, Kathmandu, the outdoor equipment chain, fell 1.6 percent to $1.83 and Michael Hill International declined about 1 percent to $1.03.

Fletcher Building, the nation’s biggest construction company, rose about 1 percent to $6.69.