MARKET CLOSE: NZ shares rise led by F&P, Nuplex

Friday 29th May 2015

New Zealand shares rose, led by Fisher & Paykel Healthcare after its annual results beat forecasts. Nuplex Industries extended recent gains.

The NZX 50 Index rose 67.312 points, or 1.2 percent, to 5844.949. Within the index, 35 stocks rose, 11 fell and four were unchanged. Turnover was $248 million.

F&P Healthcare advanced 4.8 percent to $6.60 after the medical device maker reported annual profit rose 17 percent to $113.2 million, beating earlier forecasts, and said earnings would rise further in the coming year to between $125 million to $130 million.

"Yet again, another exceeding of both their own guidance and market expectations. I don't know how many times this company has done this but it's a track record the envy of most," said Rickey Ward, New Zealand equities manager at JB Were. "Their guidance at the face of it might appear to be conservative because they keep exceeding it. It's more that they give you guidance that is not unrealistic and then they just happen to go above it. It's a well managed company with a great governance structure that allows investors to get a better understanding of it."

Nuplex extended its gains, rising 4.4 percent to $4.05, finishing the week up 7.7 percent. The specialty chemical and resin maker last week said it expects to increase its annual dividend by nearly a third and has lifted its payout ratio to 60 percent of profit.

Spark New Zealand, formerly Telecom Corp, rose 1.1 percent to $2.765. Fletcher Building, the construction and building supplies firm, advanced 1.2 percent to $8.76.

Of the day's few decliners, Kathmandu Holdings was the worst performer, with the outdoor goods retailer dropping 3.5 percent to $1.38.

Outside the benchmark index, Hellaby Holdings advanced 1.4 percent to $3.01. The NZX-listed diversified investment company has sold its packaging division to Coveris, one of the world’s largest plastic packaging and coatings companies. The enterprise value of the sale is about $30 million, including the carrying value for transaction costs and will be used to reduce debt.

"People have been waiting for them to clean a bit of the structure up," Ward said.

IkeGPS fell 2.5 percent to 78 cents. The laser measurement tool developer reported a $5.1 million loss in its latest year, compared with a loss of $2.3 million a year earlier, and just below the loss of $5.3 million forecast in its July prospectus. Sales rose to $4 million, from $1.9 million, missing its projection of $6.4 million.

Veritas Investments dropped 5 percent to 76 cents. The food and beverage investor slashed its full year profit guidance 19 percent to $4.3 million, blaming a slower than expected turnaround in its gourmet supermarket chain, Nosh Food Market, and tighter drink-driving legislation weighing on its Better Bar Company unit.

Sealegs Corp fell 1.1 percent percent to 9 cents. The amphibious vehicle maker, whose founder had to fill the vacant chief executive position last November, reported a wider annual loss in the latest financial year as an overhaul of the business resulted in restructuring costs and impairments. The net loss increased to $2.4 million from a loss of $833,000 a year earlier.

SeaDragon rose 5.6 percent to 1.9 cents. The company, which manufactures fish oil for health supplements, sank into the red in the latest financial year as ballooning costs for its Omega-3 fish oil refinery offset sales that more than doubled. The Nelson-based company reported a loss of $2.8 million, from a profit of $431,000, a year earlier

BusinessDesk.co.nz

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