NZ stocks: Shares hold their ground despite F&P plunge

12.00 pm

New Zealand shares held ground this morning as the market reacted at opposite ends of the spectrum to results from Sky Network TV and medical equipment maker Fisher & Paykel Healthcare.

The benchmark Capital Index was up one point to 2,089 on scant turnover of NZ$20.5 million by 11.30 am despite solid gains in the United States overnight.

F&P Healthcare was the market's biggest mover, plunging NZ$1.29 or more than nine per cent to NZ$12.75 after posting a net profit for the third quarter of NZ$14.1 million.

"We're still waiting on all the details but at first glance they're obviously fairly disappointing and the market has reacted that way," Credit Suisse First Boston broker Phil Hardie Boys said.

"It's hard to know if it's an overreaction until we see all the detail out of the conference call and what their outlook is for next year...It's just a market you don't want to disappoint in at the moment, it's still rather flighty."

Investors continued to reward Sky TV after Wednesday's reduced first half loss of NZ$13.2 million, 20 per cent below the same period last year, and it announced higher subscriber numbers in a more benign competitive environment.

The stock, which gained 10 cents on Wednesday, was up a further 10 cents to fresh 22-month high of NZ$4.40.

"We've been pretty positive on (Sky) for a while," Hardie Boys said.

Sky's parent, Independent Newspapers Ltd which holds 66 per cent of the pay TV company, gained four cents to NZ$3.94.

Market leader Telecom NZ Ltd, which has minority stakes in both Sky and INL and a 23 per cent weighting in the NZSE-40 capital index, was up two cents to NZ$5.33.

Fletcher Building, which reported a better than expected first half profit of NZ$41 million, regained some of yesterday's losses with a three cent rise to NZ$3.03.

Australasian credit services company Baycorp Advantage was also firmer, up 17 cents to NZ$6.80 - helping to reverse a slide of up to 16 per cent from its November peak.

Brokers said the bounce was well overdue, but noted that volume was thin.

- NZPA