F&P Healthcare shares surge as competitor recalls dangerous products

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.