The index rose nearly 2 per cent this week and has risen almost 4.5 per cent so far this year. Photo / NZME
Fisher and Paykel Healthcare spurred the New Zealand share market to a near 1 per cent gain after providing a positive trading update for its latest financial year.
The S&P/NZX 50 Index, having a good start to the year, closed in on its highest level in 10 months after climbing 91.83 points or 0.77 per cent to 11,977.48. The index was at 12,066.27 points on April 8 last year.
The index rose nearly 2 per cent this week with only one down day, and has risen almost 4.5 per cent so far this year.
There were 84 gainers and 46 decliners over the whole market on strong volume of 34.87 million share transactions worth $205.12 million.
Fisher and Paykel, the biggest stock on market capitalisation, dominated the trading with 2.27 million shares worth $59.72 million changing hands.
There was also strong interest in Meridian (trade worth $32.47m), up 7c to $5.36, and Contact ($21.86m), gaining 4c to $7.85, with a review of the iShares Global Clean Energy Exchanged Traded Fund taking place.
Medical devices manufacturer Fisher and Paykel Healthcare surged $1.26 or 5.04 per cent to $26.25 – its highest level in 10 months – after telling the market it expects full-year operating revenue to be $1.55 billion to $1.6b.
Even though the latest guidance is 8 per cent below Fisher and Paykel’s 2022 financial year revenue of $1.68b, it is well above analysts’ consensus forecast of $1.47b.
The company said sales of hospital hardware and consumables had increased in China as the country managed its current wave of Covid-19, and on a global basis hardware revenue continued to exceed pre-pandemic levels.
There was also increased demand in North America during the final months of last year because of the early start to the flu season, but the demand now appeared to be easing.
The sales growth rate of obstructive sleep apnea masks is tracking above the first-half level, Fisher and Paykel said.
Shane Solly, portfolio manager with Harbour Asset Management, said there was no follow-on market reaction to Prime Minister Jacinda Ardern’s resignation.
“It was all about New Zealand’s best company delivering a surprising positive upgrade which was 7 per cent above what the market was expecting. Fisher and Paykel kicked some life into a broad market rally,” he said.
“We have some good growth companies like Fisher and Paykel, Ebos and Mainfreight and solid defensive stocks such as the electricity generators and Spark.
“Our market is not a bad place to be in while the global economic environment is still uncertain.”
Major United States indices fell for the fourth successive day as investors became increasingly concerned the Federal Reserve will keep raising rates despite signs of slowing inflation.
One Fed official said it was important that the central bank stayed the course. “Even with the recent moderation, inflation remains high and policy will need to be sufficiently restrictive for some time to make sure inflation returns to 2 per cent on a sustained basis.”
The Dow Jones Industrial was down 0.76 per cent to 33,044.56 after breaking through 34,000 points last week; S&P 500 declined 0.76 per cent to 3898.85; and Nasdaq Composite fell 0.96 to 10,852.27.
At home, Auckland International Airport was up 8c to $8.44; Air New Zealand increased 1.5c or 1.9 per cent to 80.5c; Summerset Group gained 24c or 2.56 per cent to $9.60; KMD Brands added 3c or 2.83 per cent to $1.09; and Restaurant Brands rose 25c or 4.22 per cent to $6.17.
Among other energy stocks, Mercury was up 4.5c to $5.90; Genesis gained 6c or 2.22 per cent to $2.76; and Vector was down 9c or 2.03 per cent to $4.34.
Skellerup Holdings gained 8c to $5.49; Seeka increased 14c or 4.06 per cent to $3.59; and Stride Property gained 3c or 2.13 per cent to $1.44.
NZME rose 4c or 3.51 per cent to $1.18; NZX was up 4c or 3.17 per cent to $1.30; Embark Education added 3c or 5.26 per cent to 60c; Cooks Coffee collected 2c or 5.56 per cent to 38c; and MHM Automation improved 2c or 2.41 per cent to 85c.
Other gainers were CDL Investments increasing 4c or 5.63 per cent to 75c; TradeWindow up 3c or 7.15 per cent to 43c; Savor adding 1.5c or 3.53 per cent to 44c after strong holiday trading; and Smartpay Holdings collecting 3c or 2.29 per cent to $1.34.
Mainfreight’s strong run came to a halt, falling $1.95 or 2.67per cent to $71. Ebos Group was down $1.02 or 2.2 per cent to $44.88; and AFT Pharmaceuticals shed 10c or 2.63 per cent to $3.70.
Marsden Maritime Holdings decreased 10c or 1.75 per cent to $5.60; Move Logistics declined 2c or 1.9 per cent to $1.03; and Eroad was down 2c or 2.17 per cent to 90c.
Of the medicinal cannabis companies, Cannasouth was up 1.5c or 5.08 per cent to 31c and Rua Bioscience was down 0.007c or 3.41 per cent to 19.8c.