MARKET CLOSE: NZ stocks mixed; Chorus gains on debut

MARKET CLOSE: NZ stocks mixed; Chorus gains on debut, F&P Healthcare falls

Nov. 23 (BusinessDesk) - New Zealand shares were mixed, with the Telecom spin-off Chorus rising it in its first day of trading while Fisher & Paykel Healthcare declined after posting earnings.

The NZX 50 rose 16.39 points, or 0.5 percent, to 3268.66. Within the index, 28 stocks fell, 14 rose and eight were unchanged. Turnover was about $120 million.

Chorus, the telecommunications network operator spun off from Telecom, ended its first day of trading on the NZX at $3.21, a gain of about 9 percent from its listing price of $2.94. What's left of Telecom fell about 20 percent to $2.025.

"Chorus is where the focus is today,” said Rickey Ward, domestic and equities manager Tyndall Investment Management. "It appears investors are chasing yield." Telecom is "more of a growth engine not a utility engine."

F&P Healthcare fell 1.2 percent to $2.39 after the maker of respirators and sleep apnea treatment products, reported a 1 percent decline in first-half earnings before items, as gains in US dollar sales were eroded by the strong New Zealand dollar. The company forecast full-year profit of $62 million to $67 million, up from $52.5million last year.

“Most people believe the result was a slight profit downgrade,” Ward said.

Port of Tauranga rose 1.4 percent to $9.65 after rival North Island hub Ports of
Auckland said talks with unions had broken down and it was preparing for a strike in December that would see some ships diverted to Tauranga.

NZX, the stock exchange operator, fell 0.4 percent to $2.24. The company won its bid to pursue compensation from the sellers of the Australian Clear Grain Exchange through the New Zealand courts after the deal went sour last year.

Judge Warwick Gendall ruled in favour of the local stock exchange operator, saying the dispute raises serious issues that need to be tried on their merits, and that New Zealand courts are the appropriate venue.

Pumpkin Patch, the children's clothing retailer, climbed 7.7 percent to 70 cents and Restaurant Brands, the fast-food chain, gained 2.9 percent to $2.13.

Fisher & Paykel Appliances rose 1.3 percent to 40 cents as the New Zealand dollar sank to a new 8-month low against the greenback, swelling the value of overseas sales when they're repatriated.

Auckland International Airport, the nation's busiest gateway, rose 1.3 percent to $2.35.

Fletcher Building, the biggest construction company on the exchange, fell 0.2 percent to $5.92, a new 2 1/2-year low, amid concern there won't be a pick-up in new home building in Australia or New Zealand any time soon.

Contact Energy, the biggest utility on the NZX 50, rose 0.4 percent to $5.42.
Rakon declined 6.9 percent to 54 cents and Goodman Fielder fell 5.7 percent to 66 cents.

(BusinessDesk)

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