NZ shares rise as investors eye upbeat F&P Healthcare result

New Zealand shares edged higher, with Fisher & Paykel Healthcare among the day’s leaders as investors eye a strong result for the respirator maker on Monday.

Friday, June 26th 2020, 10:30PM

by BusinessDesk

The S&P/NZX 50 Index rose 4.87 points, or 0.04 percent, to 11,129.23. Within the index, 12 stocks rose, 33 fell and five were unchanged. Turnover was $194 million.

F&P Healthcare climbed 3.5 percent to $32, taking its gain so far this year to 44.5 percent. The breathing mask maker has been a beneficiary of the covid-19 pandemic, especially as the outbreak spreads across the US, where F&P generates about 45 percent of its revenue.

“With Fisher & Paykel, they’re not talking about the influenza season anymore, they’re talking about covid cases,” said Peter McIntyre, an investment adviser at Craigs Investment Partners.

F&P Healthcare will report its annual earnings on Monday and has provided guidance for profit to be between $275 million and $280 million on revenue of $1.24 billion in the March year.

Tourism Holdings led the market higher, up 8.1 percent at $2. Yesterday, after trading closed, the company said it didn’t need to raise new equity after reaching an agreement with its lenders for debt funding of up to $225 million. It expects to report an underlying profit of between $17.5 million and $19 million, excluding impairments of its Togo unit, in the year ending June 30.

Mercury NZ declined 1.6 percent to $4.60 after it trimmed $10 million from its annual earnings guidance and lowered its hydro-generation outlook.

Among other power companies, Meridian Energy fell 1.6 percent to $4.82, Contact Energy increased 0.8 percent to $6.21, and Genesis Energy fell 2.8 percent to $2.995, the biggest decline on the day.

Refining NZ fell 2.6 percent to 74 cents. The refinery operator yesterday said it may close its refinery and simplify its operations by supplying fuel into Northland and Auckland. It’s also weighing up a staged transition to an import terminal.

Z Energy, a cornerstone shareholder of the refinery operator, is in favour of the transition to the import terminal. It decreased 1.5 percent to $2.71.

Air New Zealand was unchanged at $1.29. The airline fell yesterday after trans-Tasman rival Qantas Airways announced a major restructuring and A$1.9 billion capital raising. Today, Bain Capital was announced as the successful bidder to buy Virgin Australia out of administration.

McIntyre said the moves by Qantas may have prompted some investors to question whether Air NZ will need to raise money.

Auckland International Airport fell 2 percent to $6.23.

Retailer Kathmandu Holdings advanced 0.9 percent to $1.15 after a survey showed consumer confidence improved this month, with a net 5 percent of respondents saying now’s a good time to buy a big-ticket item.

Fonterra Shareholders’ Fund units were unchanged at $3.72. Fonterra Cooperative Group today announced Peter McBride will take over as chair when John Monaghan retires at the annual meeting in November.

Outside the benchmark index, Evolve Education was unchanged at 12 cents after the early childcare education firm met guidance with earnings before interest, tax, depreciation and amortisation of $8.2 million.

TIL Logistics climbed 17.5 percent to 74 cents after saying its annual earnings are on track to beat the guidance it withdrew when the pandemic made it too difficult to predict trading.

Moa Group rose 10 percent to 17.6 cents after the unprofitable beer maker and restaurant operator reported positive cashflow and more than doubled its revenue due its acquisition of the Savor Group.

Augusta Capital fell 1.1 percent to 89 cents. After trading closed, the property funds manager reported an annual loss of $27 million, due largely to writedowns in the value of development property and its Asset Plus stake, and losing a deposit. ASX-listed Centuria Capital plans to mount a takeover of Augusta at $1 share in cash and scrip. The firm’s net assets were valued at 62 cents in today’s result.

(BusinessDesk)

Tags: Market Close