6 Oct 2011

Dollar puts some exporters in 'sweet spot'

7:15 am on 6 October 2011

An equities analyst says exporters benefiting from the fall in the New Zealand dollar but not as exposed to a slowdown in global demand are occupying a sweet spot in the market.

By Thursday, the New Zealand dollar had fallen more than 11 cents since a post-float high of 87.86 US cents in late July.

Investors have since moved away from riskier currencies because of fears about the escalating euro zone debt crisis and slowing global growth.

While exporters are breathing a sigh of relief, so too are investors in their stocks.

Fisher & Paykel Healthcare was the stockmarket's best performer during September, rising almost 14%.

AMP Capital Investors head of equities Guy Elliffe says that's largely due to the weaker kiwi, as healthcare has a large exposure to international revenues and a New Zealand-dollar oriented cost base.

He says investors are looking for companies that are benefiting from the weakness in the dollar but are not exposed to major macro-economic trends.

Mr Elliffe says New Zealand Refining is also benefiting from the weak New Zealand dollar, and companies like Skellerup and Nuplex are also holding up relatively well in this environment.