NZ stocks: Shares likely to remain steady

By IRENE CHAPPLE

The sharemarket should ride untroubled through a flurry of results this week.

The bad news dogging companies such as the countries largest meat exporter, Richmond, its smaller rival Affco and Fisher & Paykel Healthcare has been flagged well in advance of this week's announcements.

Analysts say shares should remain steady through the half-year results of Richmond and Affco, on Wednesday, and Fisher and Paykel Healthcare's full-year result on Friday.

Tower also reports its half-year result on Friday.

Though Richmond and Affco have been troubled by low stock, profit warnings were given in February.

Sheep numbers have dropped from 70.3 million in 1982 to 45.7 million, and beef cattle from 6.3 million in 1975 to 4.6 million.

Both Richmond and Affco said they expected an improved second half.

Macquarie Equities senior investment analyst Arthur Lim said shareholders could expect a lower figure than the previous half-year results.

Last year Richmond reported a $13.3 million after-tax profit for the half year to March 3.

That was up 35 per cent on the same period last year.

Richmond is indicating its full-year profit will be back on track.

Lim said shareholders would also be looking for an update on the PPCS situation. It owns 16.7 per cent of Richmond, and is in the process of buying a further 35.8 per cent.

The healthcare business is also under assault with the rising New Zealand dollar and competition from American company Respironics.

Lim said Fisher & Paykel Healthcare shareholders could look for an expected profit of $66 million.

The impact on the rising dollar may be significant, because the company is a major exporter.

There is also market unease over the possibility of Respironics launching a new product.

Lim said the rising dollar and issues with competitors were, in his view, overstated by the markets.