F&P Appliances surges despite lack of debt news

Shares in Fisher & Paykel Appliances have risen more than 10 per cent in three days despite the company having yet to reveal a solution to its short-term debt problems.

The whiteware maker closed up 5c on 56c yesterday, adding to a 3c gain made between Friday's closing price of 48c and close of play on Monday.

Its rise came as the sharemarket's benchmark top-50 index yesterday closed above the 2800-point level for the first time since November 2008, pulling away from recent five-year lows.

The NZX-50 closed up 52.78 points, or 1.9 per cent, at 2819.05, following a 46-point rise on Monday.

ASB Securities NZX adviser Stephen Wright said sentiment had certainly improved towards Fisher & Paykel. "The way the market is going there is obviously speculation that their capital problems aren't as dire as they were."

Last week Fisher & Paykel said it had been granted an extension of its $80 million interim banking facility from April 30 until May 29.

It also confirmed buyer interest in its East Tamaki manufacturing site which analysts say could be vital in helping the business reach an agreement with its banks. Wright said those factors seemed to have sparked interest from retail investors.

But other market commentators said there did not seem to be any particular reason for the price rise.

"There is nothing I know of that should move the price around that much," Forsyth Barr analyst Guy Hallwright said.

Mint Asset Management fund manager Shane Solly said a number of cyclical stocks like Fisher & Paykel had made a recovery on the back of improving sentiment. US contemporary Whirlpool had seen its share price rise 150 per cent since February from US$20 to just under US$50, he said.

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