Fisher & Paykel shares dominated the local market yesterday, rocketing up 66c to an all-time high of $8.26 after the company announced it would split in two.
The companies will be Fisher & Paykel Healthcare - the current F&P Industries - and a new holding company, Newco, incorporating the appliance and
finance businesses.
John Cairns, of Cavill White Securities, said the split made it easier for the market to price the company, adding value to the two parts.
"The market does like pure plays, and it allows the market to put a price on the two separate companies as opposed to two companies joined together with very little affinity," Mr Cairns said.
"If you look at similar companies in healthcare, they're trading at considerably higher multiples than the total of what F&P is trading at."
Action among other stocks was slightly more subdued, with the benchmark NZSE-40 index closing down 10 points at 1920.26. Total turnover was 35 million shares valued at $84 million.
"The volumes are pretty light, which is typical for this time of the year," Credit Suisse First Boston broker David Price said.
The local market appeared to be on the lookout for GDP figures tomorrow and the Government report on the telecommunications inquiry today.
Telecom sank to its lowest point in six years, closing down 8c at $5.13 in apprehension of the inquiry's outcome.
"Generally they don't tend to be positive for incumbent telcos," Mr Price said. There is also uncertainty about Telecom after it declared it was interested in bidding for Australia's No 2 mobile network, owned by C&W Optus.
Fletcher Energy was down 10c at $8.48 following continued weakness in its US associate Capstone Turbines and improvements in the kiwi dollar.
Lion Nathan dipped 5c to $5.25, while INL shed 19c to $3.12.
Williams and Kettle closed down 5c at $2.95 after announcing that it had purchased a 50 per cent shareholding in Kiwi Fueline from dairy company Kiwi Co-Operative Dairies.
The Warehouse closed up 3c at $5.75, Baycorp gained 5c to $11.85 and ANZ closed up 20c at $18.20.
- NZPA
