Fisher and Paykel Healthcare powers NZ sharemarket higher - Market close

Fisher and Paykel Healthcare surged $1.40 or 5.68 per cent to a 10-month high of $26.04.

An earnings upgrade from heavyweight Fisher and Paykel Healthcare powered the New Zealand sharemarket to its highest close in nearly eight months, and a hot Wall Street continued to set new records.

The S&P/NZX 50 Index traded strongly following an early-morning rise and finished at 11,978.62, up 62.91 points or 0.53 per cent after reaching an intraday high of 12,002.47.

The index was last at this peak on August 1 last year with 11,980.41 points. It gained 1.8 per cent this week and is up the same amount for the year to date.

There were 75 gainers and 55 decliners on the main board with 34.01 million shares worth $113.84 million changing hands.

In the United States, the Dow Jones Industrial Average neared 40,000 points for the first time in its 128-year history after gaining 0.68 per cent to 39,781.37.

The S&P 500 broke through 5200 points for the first time with a 0.32 per cent increase to 5241.53, and Nasdaq Composite was up 0.2 per cent to a new high of 16,401.84 – all because the Federal Reserve kept interest rates unchanged and indicated three rates cuts this year.

Fisher and Paykel Healthcare and Manawa Energy both announced increased earnings forecasts following dairy giant Fonterra’s strong first-half result the day before.

Shane Solly, portfolio manager with Harbour Asset Management, said the upgrades caught investors on the hop.

“They were healthy upgrades and we haven’t had them for a while. People have been observing the slowing economy, but the sharemarket is not the economy and it is a reminder that the market is not dead; it’s just sleeping. But maybe it’s waking up now.”

Solly said Fisher and Paykel’s respiratory devices are performing better than the market expected and the company is doing a good job delivering product to the customers. Manawa had a chunky upgrade for them under new management.

Fisher and Paykel Healthcare, which has the highest 12.75 per cent weighting on the NZX, surged $1.40 or 5.68 per cent to a 10-month high of $26.04 on trade worth $16.15m after upgrading its full-year revenue guidance to $1.73 billion, from $1.7b, and net profit to $260m-$265m, from $250m-$260m.

The market leader said its hospital consumables continued to attract solid demand through the second half of the financial year, and the Evora Full obstructive sleep apnoea mask was performing well.

Manawa Energy rose 16c or 3.76 per cent to $4.42 after increasing its full-year operating earnings (ebitdaf) guidance to $142m-$147m, up from $120m-$140m. Capital expenditure remained unchanged at $65m-$80m.

Manawa told the market it has obtained resource consent from Marlborough District Council for its Argyle Solar Farm. It also has land options for a 100MW wind farm in Marlborough and 200MWac solar opportunity in the Mackenzie Basin.

Amongst other energy stocks, Vector was up 8c or 2.12 per cent to $3.85, and Mercury was down 12c to $6.78.

The Warehouse continued to rise off the mat, gaining 3c or 2 per cent to $1.53; so is SkyCity increasing 4c or 2.04 per cent to $2; Rakon rose 6c or 5.26 per cent to $1.20; and a2 Milk reached a 12-month high after adding 13c or 1.96 per cent to $6.77.

Hallenstein Glasson was up 10c to $6.25; AFT Pharmaceuticals increased 11c or 3.87 per cent to $2.95; PGG Wrightson also rose 11c or 5.37 per cent to $2.16; Green Cross Health increased 3c or 2.88 per cent to $1.07; NZ Oil & Gas improved 2c or 4.76 per cent to 44c; and Foley Wines was up 3c or 3.03 per cent to $1.02.

Ebos Group was down 40c to $35.60; Auckland International Airport, with the second highest weighting of 9 per cent, declined 14.5c to $8.18; Tourism Holdings shed 12c or 3.77 per cent to $3.10; Vista Group decreased 7c or 3.52 per cent to $1.92; Restaurant Brands gave up 7c or 2.02 per cent to $3.40; and CDL Investments was down 3.5c or 4.35 per cent to 77c.

In the banking sector, ANZ declined 78c or 21.49 per cent to $30.57; Westpac fell 93c or 3.23 per cent to $27.85; and Heartland Group decreased 3c or 2.61 per cent to $1.12.