NZ stocks: F&P healthcare hogs the limelight in lacklustre market

1.00pm

Fisher & Paykel Healthcare shares got off to a good start this morning, stacking on another 35c to their already impressive gains this week.

At 11.30am, shares in Healthcare were up 35c at 1500, their highest level in 2-1/2 years and on turnover of $6.6 million.

By market's close last night, the stock had already gained 100c this week.

Yesterday the firm announced a five-for-one share split, which will occur on October 1.

It also said it would extend by six months its share buyback programme that was due to expire at the end of the month.

ABN Amro Craigs broker Matt Willis said Healthcare was increasingly being recognised as a versatile business by investors.

Healthcare was getting good traction for its products in the US market and could adapt to prevailing market conditions.

"This is very encouraging... they're a success story," he told NZPA today.

The benchmark NZSX-50 index was down 3.88 points at 2754.35, while the NZSX-All capital index was down 1.76 points at 919.12.

There were 21 rises and 38 falls among the 105 stocks traded.

Shares in market heavyweight Telecom were down 2c at 571, its $30.9m turnover accounting for 23 per cent of the $134.9m on NZX so far today.

There was heavy trade in financial services firm Tower, its shares shedding 8c to 207 on turnover of $85.8m.

Last night it was reported that Tower was trying to flush out trade buyers by announcing plans to spin off its Australian wealth management business, worth an estimated $255m.

The trans-Tasman firm yesterday said it planned to separately list the Australian arm, which includes Bridges and Tower Trust, with about $8 billion of funds under management, on the Australian Stock Exchange.

Mr Willis said Eric Watson's Hanover Group was exiting its more than 9 per cent stake in Tower, and realising a healthy return in doing so.

Meanwhile, he pointed to Ryman Healthcare as another success story on the market, its shares up 10c at 340, an all time high.

"I think it's a company that's being recognised for the extremely good cashflow story it has," Mr Willis said.

There were few other movers of note in a session shaping up to be thin on corporate news.

NGC Holdings shed 1c to 301 on the back of news that Auckland-based power company Vector was readying for an initial public offering.

Other shares on the move included: Air NZ down 1c at 184, AMP up 6c at 670, Cavalier down 5c at 485, Michael Hill International down 5c at 680, Pumpkin Patch down 5c at 200, and The Warehouse down 2c at 416.


- NZPA