NZX50 rises to new record as Fisher & Paykel Healthcare climbs higher

Monday, 30 November 2020

The benchmark NZX50 hit a new record high.

The New Zealand sharemarket continued its upward climb to a new record on Monday as its biggest stock, Fisher & Paykel Healthcare, gained.

The benchmark NZX50 advanced 1.02 per cent, or 128.693 points, to close at an all-time high of 12,768.52.

Fisher & Paykel Healthcare, which is the largest company listed on the NZX, increased 5.8 per cent to $35.92. The stock was the heaviest traded on the exchange today, with $98.5 million in shares changing hands.

”It is Fisher & Paykel Healthcare that has really led the market,” said Grant Williamson, an investment adviser at Hamilton Hindin Greene. “Its latest result was good and it is performing very well.”

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Last week, Fisher & Paykel Healthcare posted an 86 per cent jump in first-half profit and lifted its forecast for the full year as it benefits from a surge in demand for its breathing aids during the coronavirus pandemic.

Williamson said trading in the stock had been volatile in recent weeks as investors considered whether a Covid-19 vaccine could reduce demand for its products.

Heartland Group Holdings rose 2.8 per cent to $1.45 after chief executive Jeff Greenslade reiterated at the company’s annual meeting that it expects to report after-tax profit of between $83m and $85m in the year to June 2021.

In times of uncertainty, investors favoured companies which could meet their profit targets, Williamson said.

“It is steady as she goes and the market likes that in this environment,” he said.

Kathmandu Holdings shares dropped 6.2 per cent to $1.22 after the outdoor equipment retailer said its chief executive Xavier Simonet would leave the company in six months for a job in the Australian public service.

“It is always concerning when there is a resignation of the chief executive because having to find a replacement can take time and cause a little bit of uncertainty,” said Williamson.

Among the smaller stocks, QEX Logistics fell 8.6 per cent to 37 cents. The company, which exports milk powder to China, said the first half of its financial year was challenging. It reported a loss of $5.9m, after $4.3m worth of products went missing from its warehouse in Shanghai.