NZ stocks: F&P Healthcare prods market into positive

A sharp rise in Fisher & Paykel Healthcare shares prodded the sharemarket into the positive in morning trading today.

Healthcare, overshadowed recently by its now divorced sister, F&P Appliances, jumped 14c, 1.2 per cent, to 1165 today after the medical equipment manufacturer said it will spend up to $27.5 million in a share buy-back programme. The stock lost 11c yesterday and today traded as high as 1170.

It said it intends to purchase a maximum of 2.4 million shares between March 22 and September 30 this year on both the New Zealand or Australian stock exchanges. Yesterday, it announced it had released a new line of sleep apnea masks -- which produce nearly half the company's revenue.

The benchmark NZSX-50 gross index was up 3.75 points to 2506.06 at 11.30am, while the NZSX-40 capital index was up 3.15 points at 2283.29.

Turnover was moderate at $31 million.

Profit takers continued to peg back market leader Telecom. It fell 3c to 579 to add to yesterday's 5c fall. Critics in the media today said Telecom's campaign to lure customers from rivals had backfired, with the telecommunications giant being forced to offer a big discount to all customers, not just new customers.

Nearly half the market's turnover was in Telecom.

No.2 stock Carter Holt Harvey continued to head north on rumours of a good sale of its tissue business. It was up 3c to 199 to add to yesterday's 3c gain.

Reports suggest that Europe's leading tissue and packaging marker SCA Svenska Cellulosa AB had bid more than $800 million for Carter's tissue business -- about $100 million than earlier estimates. Carter won't comment until the end of the month when it expects to announce the sale. A capital return is predicted after the sale.

Fletcher Building, seen as a benefactor of the Reserve Bank decison last week to hold interest rates, rose another 4c today to add to yesterday's 4c gain.

Struggling financial services company AMP continued its recovery with a break above $6 - rising 7c to 604.

And another stock on the rise, Cavalier Corp, maintained its strong run, rising 3c to 507.

Wellington Drive Technology fell 10c, or 15 per cent, to 60.

Trustpower rose 10c to 720, Ports of Auckland rose 5c to to 735, Vending Technologies rose 4c to 92, Hellaby rose 4c to 499, Independent Newspapers rose 4c to 470 and Westpac NZ rose 12c to 1932.

There were 32 rises and 21 falls among the 98 stocks traded.

On Wall Street, US stocks rose after the US Federal Reserve opted to keep interest rates unchanged at 46-year lows and signalled it was not in a rush to raise borrowing costs with job creation so sluggish.

The Dow Jones industrial average closed up 81.78 points, or 0.81 per cent, at 10,184.67. The Standard & Poor's 500 Index ended up 6.21 points, or 0.56 per cent, at 1110.70. The technology-laced Nasdaq Composite Index rose 3.88 points, or 0.20 per cent, to 1943.08.

- NZPA