New Zealand shares fall sharply as Fisher & Paykel Healthcare shares surge – Market close

Hamilton Hinding Green’s Sullivan said the share price decline was a bit overdone but highlighted Spark’s growing exposure to a volatile sector.

“Spark’s business is now more focused on services and growing revenue, making it more vulnerable to a recession,” he said.

Fletcher Building was the biggest faller on the benchmark index, down 8.5 per cent to $3 on volume of 3.2 million shares, after it said it faced new litigation on two fronts, with West Australian builder BGC expected to take action over its leaky pipe dispute and the Commerce Commission alleging kickbacks from a Winstone Wallboards subsidiary breached the Commerce Act.

Sullivan said the leaky pipe dispute could represent a bigger liability for the building materials company and today’s share price drop may be justified.

“Fletcher just can’t seem to catch a break,” he said.

Among other companies reporting results today, NZX shares rose 0.7 per cent to $1.38 after the company lifted first-half operating profit by 12 per cent and said it was on track for the top end of its annual guidance range.

Channel Infrastructure shares rose 0.6 per cent to $1.58 on volume of 1.1 million after the import oil terminal reported a 10 per cent rise in first-half earnings and confirmed its full-year outlook.

The Port of Tauranga reported a 12.8 per cent fall in annual operating profit due to lower freight volumes, sending its shares down 1.3 per cent to $5.52.

Fonterra shareholders’ fund shares rose 0.5 per cent to $4.51 after the world’s largest dairy exporter raised its forecast farmgate milk price – an input cost for the co-operative – while also signalling it was on track to pay a bumper annual dividend.

Winton Land fell 10 per cent to $1.90 on volume of just 8711 shares after it reported a 69 per cent fall in annual earnings as the market downturn hurt sales.

Kiwi Property Group fell 1 per cent to 96 cents. The commercial property company declared a first-quarter dividend of 1.35 cents per share and resumed its dividend reinvestment plan.

Marsden Maritime Holdings, which owns half of Northport, fell 3.1 per cent to $3.39 on volume of just 435 shares after reporting a 9 per cent rise in annual operating profit, while South Port NZ rose 2.6 per cent to $5.85 on volume of 244 shares after reporting a 13 per cent fall in underlying profit.