Technology has overtaken tourism at the top of the NZX, with exporter Fisher & Paykel Healthcare ousting Auckland Airport as the country's most valuable company.
Note from Share Investor: Was taken on a ride with this one over the last 5 years and I don't think its finished yet.
In one way or another its fate will be determined over the next few years not so much by Fisher and Paykel [FPH.NZ] but they will continue how they have done business since year one, that is without fear or favour of anything political. They will just get on with business regardless but politically the share FPH is definitely in favour.
Watch for a big rise in share price if Winston Peters goes with either left, left, left of centre Labour or left of centre party National tomorrow or Friday or whenever he feels like it.
Look for the dollar to reach lows next year if Winnie the Pooh gets his way and the dollar is somehow uncoupled from the mood of the economy. As it has been for many decades now then the sky is just about the limit for this share.
I could be proven wrong but something tells me 3 million dollars for every movement per cent in the dollar is the figure.
F & P have forward cover for this but as soon as this is used all bets are off.
F&P Healthcare shares have been on a five-year bull run as the company has expanded its hospital and home sales of medical devices that treat breathing disorders.
The company is now worth $7.446 billion – a few hundred thousand dollars more than Auckland Airport which was relegated into second place on the NZX at the close of trading on Wednesday.
F&P Healthcare shares have been boosted in recent weeks by a decline in the value of the New Zealand dollar, which has the effect of boosting its export revenues and profit margins.
A decline in the Kiwi that followed confirmation of the election result on Saturday has helped provide the impetus to take F&P Healthcare over the line.
Shares in the company closed 17 cents higher at a record high of $13.05 on Wednesday, while Auckland Airport shares had slipped 2c to $6.24 just before 5pm.
F&P Healthcare shares had a small wobble last year.
One cause was concerns over the President Trump's threats to renegotiate a trade agreement with Mexico – where F&P Healthcare has its American manufacturing base.
Another was concern over tit-for-tat patent litigation by Californian Resmed.
Resmed said the New Zealand firm's masks, designed to treat sleep apnoea, violated its patented technology after F&P Healthcare launched its own litigation.
Nerves about the litigation may have been calmed after a German court suspended Resmed's two patent proceedings pending the outcome of a European Patent Office decision over the patents.
Fisher & Paykel Healthcare @ Share Investor
