NZX CLOSE: NZ shares rise on FPH debt repayment; GPG falls

Monday 19th October 2009

New Zealand shares rose, pushing the NZX 50 Index to its highest close in more than a year, after Fisher & Paykel Healthcare said it would use hedging gains to repay debt.

The NZX 50 climbed 13.72, or 0.4%, to 3220.92, its fourth daily gain. Within the index, 19 stocks rose, 20 fell and 11 were unchanged. Turnover was $60.2 million.

F&P Healthcare climbed 2.7% to $3.05 after the maker of respirators and breathing masks repaid some $23 million of debt after realising some gains in its forward exchange hedge book.

“Now that the kiwi’s well-above its long-term average we thought it was a good time to take cover on that side of the book,” Tony Barclay, chief financial officer, told BusinessWire.

Restaurant Brands, which holds the New Zealand franchise for KFC, Pizza Hut and Starbucks, rose 2.8% to $1.46. That followed a 6.8% jump on Friday, when the fast-food chain posted a 240% increase in first-half profit, reflecting rising sales of chicken and the impact of impairment charges a year earlier.

ASB Bank today said the New Zealand economy will be stronger than it had previously estimated in 2010. The economy may expand 2.4% in the 12 months ended March 31, 2011, up from ASB’s previous forecast of 1.9%. “The world is starting to wake up from its synchronized recession and New Zealand is one of the early birds,” said Nick Tuffley, ASB’s chief economist.

Fletcher Building, the nation’s biggest construction company, gained 2.2% to $8.35. Last week Fletcher said sales at Formica will rise after the laminates unit completes its global restructuring while demand for building products will increase as global economic growth returns.

Methven Ltd., the tap-ware and bathroom products company, gained 2.9% to $1.76, leading the index higher. The stock is rated a ‘buy’ based on four analyst recommendations compiled by Reuters. The shares have gained 50% in the past six months.

Michael Hill International, the jewellery chain, gained 1.5% to 67 cents. Freightways Ltd., the biggest courier firm on the NZX, rose 1.3% to $3.15.

Guinness Peat Group fell 2.3% to 86 cents after the investment group on Friday raised its offer for Australian financial services group MMC Contrarian it doesn’t already own to 40 Australian cents from 38 cents and said the new price is final.

PGG Wrightson rose 1.3% to 79 cents. The nation’s biggest rural services company today defended new cornerstone shareholder Agria Corp. over U.S. class-action lawsuits and delays in filing its annual report in America, saying both were known during due diligence.

Agria, a seed and animal services company that trades on the NYSE, said it would buy the equivalent of 13% of Wrightson’s existing share capital at 88 cent a share as part of a cooperation agreement including access to the Chinese market.

Businesswire.co.nz

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