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A2, Fisher & Paykel lift NZ stocks

NZ Newswire logoNZ Newswire 3/02/2017 Sophie Boot

New Zealand shares have gained, led by A2 Milk Co and Fisher & Paykel Healthcare, while Metro Performance Glass plunged after disappointing investors.

The S&P/NZX50 Index advanced 40.85 points, or 0.6 per cent, to 7094.39 on Friday. Within the index, 25 stocks rose, 14 fell and 11 were unchanged. Turnover was $145 million.

Metro Glass was the worst performer, down 18.5 per cent to $1.54. The Auckland-based company, which has more than half the country's glass processing market, said annual net profit was likely to be similar or even lower than the prior year's $20.5 million as local sales lagged behind expectations and costs were higher than expected.

"They released a pretty disappointing update," said Greg Easton, an adviser at Craigs Investment Partners.

"They achieved very well on the revenue growth front, however, they've had to spend a lot on some of their expansion plans and that spending hasn't yet been offset by increased revenue."

A2 Milk led the index, up 3.9 per cent to $2.38, continuing Thursday's gains when it was reported that UK consumer giant Reckitt Benckiser is in talks to buy Mead Johnson Nutrition, the US-based baby-food maker, for $US90 per share, nearly a 30 per cent premium.

"It's an interesting sector, there's a whole bunch of companies that move depending on what the others do," Mr Easton said. "We're also seeing other exporters up today, there's a bit of weakness in the dollar possibly giving them a wee lift as well. A2's an amazingly volatile stock at the best of times."

F&P Healthcare rose 2.3 per cent to $9, Fletcher Building gained 1.8 per cent to $10.32, and Argosy Property advanced 1.5 per cent to $1.04.

Sky Network Television dropped 2.6 per cent to $4.43, SkyCity Entertainment Group fell 1.9 per cent to $3.72, and Comvita declined 1.4 per cent to $7.

Hallenstein Glasson Holdings gained 3 per cent to $3.40. The clothing retailer said first-half profit rose about 34 per cent to between $9m and $9.2m after it enjoyed a stronger Christmas trading season.

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