NZ stocks open soft, F&P Healthcare gain offsets deeper loss

The US market was rocked overnight. Photo / Ap.

New Zealand stocks opened soft after another bad day on world markets, but a gain in respiratory products maker helped prevent a deeper loss.

By 10.10 am, the S&P/NZX50 capital index was off 153 points or 1.6 per cent at 9302.

But F&P Healthcare - the country's biggest listed stock and one of the few likely to gain from the coronavirus outbreak - gained 30 cents to $25.95.

F&P Healthcare makes up 15 per cent the S&P/NZX50 capital index.

Overnignt, global stocks, oil prices and government bonds fell sharply as concerns about governments' ability to deal with the coronavirus outbreak continued to mount.

The prospect of slumping energy demand sent the US oil benchmark WTI crude down about 24 per cent to US$20 a barrel, the third-worst day on record.

Another oil benchmark, Brent, dropped about 9 per cent to a 17-year low of US$26 a barrel.

On Wall Street, the S&P 500 index closed down 5 per cent, off its lows for the day. The Dow Jones Industrial Average was off more than 6 per cent.

"F&P Healthcare is up 1 per cent and its 15 per cent of the market. It's the Atlas of our market. It's been a rock," Mark Brown, chief investment officer at Devon Funds, said.

The company upgraded its earnings performance this week, due mostly to the weaker New Zealand dollar and to increased demand.

"Our respiratory humidifiers and consumables are directly involved in treating patients with coronavirus," chief executive Lewis Gradon said this week.

"We have seen an increase in demand globally and have ramped up our manufacturing output. At the same time, we have benefited from stronger sales in our Homecare product group and a weakening of the NZ dollar."