by BusinessDesk
The S&P/NZX 50 Index rose 134.22 points, or 1.1%, to 12,696.39. Within the index, 21 stocks fell, 26 rose and three were unchanged. Turnover was high at $650.8 million.
Kiwi ventilator manufacturer F&P Healthcare led the market higher, leaping 5.6% to $30.75, with investors trading almost $30 million worth of stock.
Hamilton Hindin Greene investment adviser, Grant Davies said the move was likely driven by the news that Royal Phillips – better known just as Phillips – had recalled 4 million to 5m ventilators and sleep apnoea devices.
The Dutch company found possible health risks with a polyester-based foam used for sound absorption in the products. This sent its share price tumbling more than 4% and shaved a billion dollars off its market capitalisation.
Some of this money seemed to find its way to competitor firms, with healthcare company ResMed also jumping 6% on the ASX today.
A2 Milk also traded strongly on both the NZX and ASX as Aussie investors returned to work after a long weekend. The milk marketing firm was up 4.3% at $6.56 and its supplier Synlait Milk climbed 3.2% to $3.60.
“There seems to have been an exhaustion of sellers and the buyers are back with a relief rally,” Davies said.
The dual-listed dairy stock also avoided being relegated out of the ASX 100, saving it from a sell down by funds that track that index.
Shares in horticulture firm Scales slid 2.1% to $4.75 after it said it was no longer looking at buying winemaker Villa Maria after tyre-kicking for a couple of months.
Scales said due diligence costs will be recognised in half-year results to June 30.
Infratil share were up 1.5% at $7.71 after its new round of infrastructure bonds were issued, bringing $54.8m into the company’s coffers.
Investore Property declined 0.5% to $2.09. The investment firm sold a Dunedin property for $10.2m, 8.5% above book value. Investore decided to shed the property after its tenant, the Warehouse, said it would not renew the lease.
Gentrack rose 2.4% to $2.15 as investors looked forward to a presentation tomorrow in which the new chief executive will outline the struggling software firm’s reset and three-year business strategy.
The kiwi dollar was trading at 71.35 US cents at 3pm in Wellington, down slightly from 71.41 cents yesterday.
BNZ interest rate strategist Jason Wong said it was hard to pinpoint what was causing the dollar to weaken.
“Our short-term fair value model estimate has pushed up to 74.20, the highest level since 2014,” he said.
Economists and traders have predicted the currency will climb significantly this year, but it has stayed stubbornly range bound.
The trade-weighted index was at 74.26 at 3pm, from 74.25 yesterday. The kiwi traded at 92.69 Australian cents from 92.72 cents, 78.57 yen from 78.39 yen, 58.87 euro cents from 59.01 cents, 50.60 British pence from 50.61 pence, and 4.5712 Chinese yuan from 4.5634 yuan.
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