NZX CLOSE: NZ shares gain; Pan Pacific gains on Vietnam farm-in; FPH surges

Thursday 19th November 2009

New Zealand shares rose for the first day in three after Pan Pacific Petroleum said it may yet can exposure to a Vietnam exploration block and Fisher & Paykel Healthcare posted a record first-half profit and was upbeat about the remainder of the year.

The NZX 50 Index climbed 12.77, or 0.4%, to 3141.17. Within the index, 19 stocks rose, 20 fell and 11 were unchanged. Turnover was a paltry $43 million, with some investors putting funds aside for a wave of initial public offerings coming to the market.

Pan Pacific climbed 5.5% to 58 cents after saying PetroVietnam would use its pre-emptive right to acquire a 10% interest out of 15% in an exploration block that would otherwise been available to Pan Pacific, which today said it may secure the other 5%.

Chief executive Tom Prudence told shareholders at their annual meeting today that the company has the equivalent of A$87 million cash on hand and plans to participate in five attractive exploration wells over the next six months “with the potential to have a significant impact.”

F&P Healthcare surged 4.6% to $3.19 after posting a record first-half profit of $37 million, as revenue climbed 18% and the company benefited from favourable exchange rate movements and early close-out of forward cover, the result was achieved on revenue of $251.4 million.

"We are very encouraged by the better-than-expected growth we have achieved in the first half, which has offset the effect of the appreciating New Zealand dollar," said CEO Michael Daniell. “For the remainder of the 2010 financial year, the company expects continuing growth in demand for its products.”

Cavalier Corp., the carpet maker, rose 2.5% to $2.51. Demand for residential carpet is beginning to stabilise, particularly in Australia, though at volumes some 20% lower than normal, said Forsyth Barr analyst John Cairns, according to the ShareChat website. Commercial carpet demand is continuing to soften.

Still, “Cavalier is well-managed with significant operating leverage to a recovery in expenditure on discretionary consumer durables," Cairns said.

Mainfreight Ltd, the biggest trucking firm on the NZX, fell 0.2% to $5.64 after posting a 37% slump in half-year profit, reflecting disappointing U.S. trading.

“Sales growth and improved efficiency remains our highest priority,” the company said. Trading improved in the second quarter, it said.

PGG Wrightson sank 7.1% to 65 cents, the biggest decline on the NZX 50 today. The biggest rural services company has yet to disclose its much-awaited capital raising, which risks being caught in the rush of private companies seeking capital by going public.

DNZ Property Fund Ltd, which has a portfolio worth some $770 million, has joined the IPO rush, announcing plans to raise as much as $140 million to repay bank debt, end its management contract and join the NZX 50 index.

Kathmandu, the outdoor equipment chain which listed on Friday after selling at IPO at $2.13, rose 1.4% to $2.17 today.

NZ Farming Systems Uruguay slipped 2.2% to 44 cents. ING Property Trust fell 2.6% to 76 cents and courier firm Freightways fell 2.2% to $3.07.

Businesswire.co.nz

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