A nearly 5 per cent gain for Fisher & Paykel Healthcare after its first-half financial result gave the New Zealand sharemarket a boost on Thursday.
The benchmark S&P/NZX50 Index closed up 0.2 per cent, or 27.8 points, at 12,794.6 following a 0.6 per cent gain on Wednesday .
Shares in top stock Fisher & Paykel Healthcare jumped 4.9 per cent to $33.78, despite posting a 2 per cent drop in first-half profit as demand slowed for its breathing aids used to treat Covid-19. Net profit fell to $221.8 million, from $225.5m last year while expenses increased 5 per cent to $265.3m.
Greg Main, a director at Jarden, said the result still beat market expectations.
READ MORE: Reserve Bank forecasts point to ‘near recession’ from second half of next year NZX50 shrugs off Reserve Bank rate rise with a 0.6 per cent gain Fisher & Paykel Healthcare profit slips 2% as demand for breathing aids to treat Covid-19 slows
"They had very strong hardware sales, that's the machines that they put into hospitals, during the Covid pandemic in the first couple of waves.
"So most analysts were thinking naturally sales levels would fall, and one of the main areas of outperformance was hardware sales, it probably surprised on the upside," said Main.
The market was also taking the positive view about the company’s ability to pass on any cost increases, and there were indications of a solid medium-term outlook, he said.
Among other blue chips, Meridian Energy fell 3.3 per cent to $4.61, Contact Energy fell 0.3 per cent to $7.97, Mainfreight was virtually flat, up 0.04 per cent at $92.11, Spark was down 0.2 per cent at $4.41, and Auckland Airport fell 1 per cent to $7.92.
Ryman Healthcare was up 0.4 per cent at $12.25, although fellow retirement village operator Arvida fell 1.5 per cent to $1.96, and Oceania Healthcare fell 2.2 per cent to $1.28.
Corporate travel technology company Serko slumped 12.4 per cent to $6.87, having completed its $75m capital raising at $7.05 per share. The company had also announced on Wednesday a 50 per cent increase in net loss after tax to $15.2m for the six months ended September 30.
"They did the capital raising at a discount to where the share price was, and the result was a bit weaker than what people had hoped, with restrictions around travel," said Main.
"They’re in an interesting space, and they're probably one of those businesses that could be a true global player, which is why they're raising the money – still a bit of a wait and see around executing."
Technology company Rakon posted a big jump in interim net profit to $18.9m, from $4.6m a year earlier. It was rewarded with a 1.1 per cent decline to $1.78.
"That's had a good recent run, so it's probably not so bad, given where it’s been," said Main.
Australia's benchmark S&P/ASX200 Index was up just 6.7 points at 7406 in late afternoon trading.
Earlier on Wall Street, the benchmark S&P 500 index gained 0.2 per cent to 4701.46 before markets closed for the Thanksgiving holiday in the United States. Markets reopen on Friday for a shortened trading session.
The blue chip Dow Jones Industrial Average slipped less than 0.1 per cent to 35,804.38, and the tech-heavy Nasdaq composite gained 0.4 per cent to 15,845.23.
– With AP
- Real Income Expectations Rise to Record High, Boosting Trump’s Re-Election Chances
- Three Success Stories - This Economy Can Be Beat
- UPDATE 1-Roche boosts 2019 sales outlook, sees Spark deal this year
- This Post Could Give You Just The Spark You Needed
- Ocasio-Cortez endorsement gives Sanders shot in the arm at critical time
- Chiropractors give a big boost to people’s veto campaign against new vaccine law
- A-B-C's of Beating the Book
- VIETNAM NEWS HEADLINES OCTOBER 16
- ET Exclusive: Will make India a better place to do business, says PM Modi
- Entrepreneurs are our 'Growth Ambassadors', will make India a better place to do business, says PM Modi
- Moderate Democratic candidates' strategy shifts from taking down Biden to attacking Warren
- Get in Shape - 7 Steps For Teenagers to Develop a Great Physical Self-image
- What Are the Biggest Mistakes in Influencing?
- Health Care and Medicine - Spot the Recession-Free Career Opportunity
- ET Wealth ratings: Comparison of 10 tax-saving investments under Section 80C
- Our Health Care System - What Went Wrong? How to Stay Out of it and Survive
- Note to American Friends About Canadian Health Care
- Who is Responsible For Health Care?
- Queen Elizabeth approves UK prime minister's request to suspend parliament
- Democrats 2020: What their key issues are
Fisher & Paykel Healthcare beats expectations, gives NZX50 a boost have 732 words, post on www.stuff.co.nz at November 25, 2021. This is cached page on Law Breaking News. If you want remove this page, please contact us.