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NZX 50 rises to record on upbeat day

NZ NewswireNZ Newswire 27/05/2016 Jonathan Underhill

New Zealand shares rose as better-than-expected full-year earnings from Fisher & Paykel Healthcare added to upbeat sentiment for the local market © Facebook / Fisher and Paykel Healthcare New Zealand shares rose as better-than-expected full-year earnings from Fisher & Paykel Healthcare added to upbeat sentiment for the local market New Zealand shares rose as better-than-expected full-year earnings from Fisher & Paykel Healthcare added to upbeat sentiment for the local market. Mainfreight, which reported on Thursday, and Vital Healthcare Property Trust were among leading gainers.

The S&P/NZX 50 Index gained 44.66 points, or 0.6 per cent, to 6,992.54, a record-high close. Within the index, 33 shares rose, 10 fell and seven were unchanged. Turnover was $145 million.

F&P Healthcare climbed about 1 per cent to $10.30 and has gained about 15 per cent this year.

The maker of breathing masks and respirators posted a 27 per cent gain in full-year profit to a record $143.4 million, beating its guidance and market estimates, and said it expects to achieve both record earnings and sale in the current year.

"Healthcare has been the biggest outperformer versus forecast" this earnings season, said David Price, a broker at Forsyth Barr.

Mainfreight rose 2.6 per cent $17.36. The transport and logistics group on Thursday reported a 6.3 per cent gain in full-year profit as improved trading in New Zealand, Asia and Europe was offset by weaker results in Australia and the Americas.

Price said the result was in line with expectations, which had caused some people to "breathe a sigh of relief."

Freightways rose 2.1 per cent to $6.89.

Air New Zealand rose 1.9 per cent to $2.13. the stock sank to its lowest level since late 2014 this week on concern about increased competition and the likelihood that Virgin Australia will need recapitalising before it can be sold.

"I'm sure there are buyers at the right price," Price said, but there was still a question of how much was needed for the recapitalisation.

Vital Healthcare rose about 3 per cent to $2.245 and Xero gained 2.9 per cent to $17.50. Genesis Energy climbed 2.2 per cent to $2.065, Kiwi Property Group climbed about 2 per cent to $1.545 and Trade Me Group rose about 2 per cent to $4.71.

Ebos Group rose 1.7 per cent to $16.33 and Steel & Tube Holdings gained 1.5 per cent to $2.04.

Warehouse Group was the biggest decliner, falling 1.5 per cent to $2.71, and Kathmandu fell 1.3 per cent to $1.53. Tower dropped 1 per cent to $1.465.

Outside the benchmark index, Abano Healthcare rose 1.3 per cent to $7.85 after saying its sale of a half stake in Bay International had gone unconditional after it got a waiver from the NZX. Trilogy International fell 0.7 per cent to $4.20.

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