F&P at record on higher profit

Fletcher Building shares rose 0.5 per cent to $8.44. Photo / Natalie Slade

Xero down as hiring leads to a wider loss.

New Zealand shares rose as Fisher & Paykel Healthcare advanced to a record after lifting its annual profit guidance. Xero fell as its first-half results showed a slower pace of growth.

The NZX 50 index rose 4.89 points, or 0.1 per cent, to 5526.95. Within the benchmark, 22 stocks rose, 19 fell and nine were unchanged. Turnover was $132 million.

Fisher & Paykel Healthcare climbed 2.5 per cent to a record close of $5.76. The Auckland-based company posted a 10 per cent gain in first-half profit to $48.9 million and raised its expectation for annual earnings to a range of $105 million to $110 million.

"It seemed to be slightly ahead of what the market was going for," said Ricky Ward, New Zealand equity manager at JB Were.

"It's an expensive-looking company on historical multiples. I always say the market is expensive relative to history at the moment and sometimes it's worthwhile paying for quality and healthcare clearly is continuing to deliver."

The benchmark index had gained some 16 per cent, fuelled by investors looking for yield in a low interest-rate environment and was looking fully priced, said Ward.

Xero, the cloud-based accounting software firm, dropped 2.6 per cent to $17.05 after it widened its first-half loss to $24.5 million from $17.1 million after spending more on staff and marketing. Pacific Edge rose 2.5 per cent to 82c.

A2 Milk Co, the milk marketer, was the worst performer on the benchmark index, falling 3.2 per cent to 60c.

Vital Healthcare Property, the hospital investor, was unchanged at $1.51 after the company announced a first-quarter dividend of 2c a unit.

Spark, formerly Telecom, declined 0.8 per cent to $3.23.

Fletcher Building, the construction and building supplies business, rose 0.5 per cent to $8.44

Outside the benchmark index, Serko, the online travel booking business, climbed 4.2 per cent to $1 after it widened its first-half loss to $3.6 million from a loss of $347,146, in line with its May prospectus as it hired more staff to chase sales growth.