NZX50 gains 0.4% this week as F&P Healthcare hits 2-mth high

New Zealand’s S&P/NZX 50 index closed out Friday on the green side of the ledger, taking its weekly gain to 0.4% as heavyweight Fisher & Paykel Healthcare climbed to a two-month high with a weaker kiwi dollar boosting the value of exporters’ international receipts.

Fletcher Building was among the standouts in the week, with Statistics New Zealand figures hinting at a turn in the residential property, although local tech stocks were caught up in the souring mood around the world, with travel software developer Serko feeling the pinch.

Meanwhile, Briscoe Group reported softer third-quarter sales with its Rebel Sports chain weighing on gains at the retailer’s eponymous homeware network.

And Spark New Zealand ended the week at a five-month low after the telco’s chair Justine Smyth and managing director Jolie Hodson were returned to the board with a small protest vote against their re-elections, a couple of days after the stock was downgraded by Forsyth Barr analysts.

Three in a row

The NZX50 rose 22.4 points, or 0.2%, to 13,599.21 on Friday, within the index, 25 stocks gained, 23 fell and two were unchanged. Turnover across the main board was $110.3 million, of which Fisher & Paykel Healthcare accounted for $28.3 million as it rose 0.9% to a two-month high $38.50.

The country’s biggest listed company gained 3.8% this week, its best since May, with the kiwi dollar falling to seven-month lows against the greenback and 16-year lows against the euro.

The currency fell to 56.19 US cents at 5pm in Auckland from 56.62 cents yesterday, and dropped to 48.71 euro cents from 49.21 cents. Fruit exporter Scales Corp led the NZX50 higher on Friday, as it gained 3.2% to $6.09, while rubber goods maker Skellerup advanced 2.6% to $5.49.

The gains for the medical device maker underpinned the NZX50 as it notched up its third weekly gain in a row, advancing 0.4%. Fletcher Building was one of the stronger performers this week, climbing 7.1% even as it snapped a seven-day run higher on Friday as it slipped 0.6% to $3.49.

Meanwhile, Oceania Healthcare rose 2.5% to 82.5 cents, taking its weekly gain to 4.4%, while Summerset Group Holdings and Ryman Healthcare were up 2.2% and 2.8% for the week after Stats NZ figures on Monday showed a lift in new residential building permits in September.

Technical difficulties

It was a rough week for tech companies, with Wall Street’s Nasdaq Composite down 2.8% with the Friday session to go as investors lose their enthusiasm about the artificial intelligence trade.

That filtered through to New Zealand, with travel software developer Serko sliding 13% this week, having ended Friday unchanged at $2.36, while utilities software firm Gentrack declined 0.7% to $8.61 on Friday, taking its weekly fall to 5.9%.

Vista Group International snapped two days of gains on Friday as it fell 2.2% to $2.68, eking out a 1.1% gain for the week.

Briscoe Group declined 1.8% to $5.40 after reporting a 1.8% decline in third quarter sales, with the Rebel Sports chain’s soft revenue more than offsetting a 1.8% increase in sales from the homeware chain.

“They acknowledged things are still pretty tough out there, and rate cuts haven’t fed through to the consumer just yet,” said Greg Smith, investment specialist at Generate Investment Management. “A lot of retailers are hanging out to see how the Christmas period is going to go, and for those in Auckland, they’ll have one eye on Ikea.”

Hallenstein Glasson Holdings rose 0.4% to $10.09 and KMD Brands was unchanged at 28 cents, while outside the benchmark index, Warehouse Group fell 1.2% to 80 cents and Michael Hill International declined 1.3% to 39 cents.

Spark New Zealand was the most heavily traded stock on the day with a volume of 2.1 million shares, as it fell 2.1% to $2.29, a five-month low. The telco held its annual meeting in Auckland today, where three of its new board members had their appointments ratified by shareholders, while managing director Jolie Hodson and chair Justine Smyth were returned with small protest votes against their re-elections.

The telco was hit with an ‘underperform’ recommendation by Forsyth Barr analysts this week, who prefer Infratil’s One New Zealand in what’s still an attractive mobile market. Infratil gained 0.6% to $12.34 on Friday.

Reporting by Paul McBeth. Image from Fisher & Paykel Healthcare.