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Ricky Wilson / Stuff
The benchmark NZX 50 index was lower, dragged down by its largest stock.
New Zealand’s stock market fell as its largest stock, Fisher & Paykel Healthcare, weakened on concerns that a coronavirus vaccine and a rising currency could affect future earnings.
The benchmark NZX 50 index fell 0.14 percent, or 17.53 points, to 12,707.27 on Friday.
Fisher & Paykel Healthcare was the highest-priced stock by value on the exchange on Friday, with 37.6 million shares changing hands. Its shares fell 4 percent to $ 32.20. They have gained 47 percent so far this year.
“Fisher & Paykel represents about 25 percent of the market, so that’s going to move that index,” said Grant Davies, investment advisor at Hamilton Hindin Greene.
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Demand for respiratory devices from the healthcare company has increased during the coronavirus pandemic and advances in vaccine development have been weighing on stocks.
“Right now, we are optimistic about the vaccine that moves the markets and that has generally been good for the markets, but not so much for Fisher & Paykel,” Davies said.
The growing strength of the dollar also weighs on the prospects for exporters like Fisher & Paykel, he said.
Westpac said this week that it expects the dollar to reach 72 cents by the end of the year and 74 cents by the middle of next year.
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The demand for respiratory aids from Fisher & Paykel Healthcare has increased during the coronavirus pandemic.
The second largest stock traded on the exchange today was The a2 Milk Company, with shares of $ 13.8 million changing hands. Shares in the specialty milk marketer rose 3.5 percent to $ 14.18.
“It’s been a bit of a mixed day with Fisher & Paykel going down and a2 coming back a bit after a few days off,” Davies said.
“A couple of the big caps on the NZX were pushing in different directions and it’s been quite mixed,” he said.
Vista Group rose 2.9 percent to $ 1.79 after the motion picture software firm said it bought the remaining 50 percent of Cinema Intelligence that it did not already own.
Fonterra’s Stockholders’ Fund, which offers investors exposure to the Fonterra Cooperative Group, advanced 0.9 percent to $ 4.39 after the dairy raised the lower end of its milk price range in the exploitation.
