21 Aug 2014

Fisher & Paykel dismisses share jump

8:59 am on 21 August 2014

A spike in Fisher & Paykel's share price, just ahead of the company's annual general meeting in Auckland yesterday, has been downplayed by the company's chief executive.

Shortly before the meeting was set to begin, the company's investor relations and corporate affairs manager Marcus Driller told Radio New Zealand the share price was up significantly, rising 11 cents.

When asked why, Mr Driller said he couldn't provide any details ahead of the official release to NZX.

However, once the guidance was published by NZX, it indicated only a modest increase in profit of $3 million, bringing the full-year profit forecast to $100 million.

The share price reacted immediately, and fell back to end the day just 1 cent up at $4.84.

The company's chief executive, Michael Daniell, said the company routinely updates its guidance at its annual shareholder meetings, and he didn't think the see-saw rise-and-fall of its share price was particularly significant.

"Share prices are volatile. We've had a number of things happen in the last few days overnight. We saw the New Zealand currency come off a bit, which is obviously favourable to us," Mr Daniell said.

"Shareholders decide on what they're doing with price, not us."

He said that given the company's share price of about $4.80, the increase before the meeting was a relatively small percentage movement.

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