Chorus gains on debut, F&P Healthcare falls after result

Photo / Kenny Rodger

New Zealand shares were mixed, with the Telecom spin-off Chorus rising in its first day of trading while Fisher & Paykel Healthcare declined after posting earnings.

The NZX-50 rose 16.39 points, or 0.5 per cent, to 3268.66. Turnover was about $120 million.

Chorus, the telecommunications network operator spun off from Telecom, ended its first day of trading on the NZX at $3.21, a gain of about 9 per cent from its listing price of $2.94. What's left of Telecom fell about 20 per cent to $2.025.

"Chorus is where the focus is today," said Rickey Ward, domestic and equities manager at Tyndall Investment Management. "It appears investors are chasing yield." Telecom is "more of a growth engine not a utility engine".

F&P Healthcare fell 1.2 per cent to $2.39 after the maker of respirators and sleep apnoea treatment products reported a 1 per cent decline in first-half earnings before items, as gains in US dollar sales were eroded by the strong New Zealand dollar. The company forecast full-year profit of $62 million to $67 million, up from $52.5 million last year.

"Most people believe the result was a slight profit downgrade," Ward said.

Port of Tauranga rose 1.4 per cent to $9.65 after rival North Island hub Ports of Auckland said talks with unions had broken down and it was preparing for a strike in December that would see some ships diverted to Tauranga.

NZX, the stock exchange operator, fell 0.4 per cent to $2.24. The company won its bid to pursue compensation from the sellers of the Australian Clear Grain Exchange through the New Zealand courts after the deal went sour last year. Judge Warwick Gendall ruled in favour of the local stock exchange operator, saying the dispute raises serious issues that need to be tried on their merits, and that New Zealand courts are the appropriate venue.

Pumpkin Patch, the children's clothing retailer, climbed 7.7 per cent to 70c and Restaurant Brands, the fast-food chain, gained 2.9 per cent to $2.13.

Fisher & Paykel Appliances rose 1.3 per cent to 40c as the New Zealand dollar sank to an eight-month low against the greenback, swelling the value of overseas sales when they're repatriated. Auckland International Airport, the nation's busiest gateway, rose 1.3 per cent to $2.35.

Fletcher Building, the biggest construction company on the exchange, fell 0.2 per cent to $5.92, a new 2-year low, amid concern there won't be a pick-up in new home building in Australia or New Zealand any time soon.

Contact Energy, the biggest utility on the NZX-50, rose 0.4 per cent to $5.42.

Rakon declined 6.9 per cent to 54c and Goodman Fielder fell 5.7 per cent to 66c.