The healthcare stock winning from COVID-19
A New Zealand healthcare firm is one of the few stocks to see a material increase in its share price in light of COVID-19.
Fisher & Paykel Healthcare, which was based in New Zealand but listed on the ASX in 2001, had seen its share price rise 9.8% year to date to 12 March. This is a sharp contrast to the stock market performance of the ASX 200 which had fallen 19.7% over the same period.
The firm produced respiratory equipment such as humidifiers, as well as disposable medical equipment such as chambers and breathing circuits, used to deliver gases received during ventilation.
Its flagship product was a respiratory humidifier for patients who were being ventilated in intensive care.
Founded in 1934 in Auckland, its share price has risen by 325% in the past five years compared to returns of 22.9% by the ASX 200, according to FE Analytics.
Stephen Wood, manager of the $5.6 million Eiger Australian Small Companies fund, said: “Fisher & Paykel produces respiratory equipment and consumables which can only be used once. The boost to the business will be more than shortlived and it could give the business a big step-up.
“Healthcare firms will do well and see increased activity, they are defensive stocks so are less reliant on consumer spending.”
It is also known for producing kitchen appliances such as washing machines, ovens and fridges under a separate company Fisher & Paykel Appliances.
Share price of Fisher & Paykel Healthcare year to date versus ASX 200
AUTHOR
Laura Dew
Recommended for you
Index provider MSCI has unveiled two measures to make it easier for financial advisers and wealth managers to access transparent insights into private assets.
Vanguard has announced a strategic alliance with two US alternative asset managers to develop multi-asset solutions for financial advisers which combine public and private markets.
Clime Investment Management has enacted a range of growth initiatives to boost the firm’s reach with wholesale investors and a new approach targeting the retail market.
Generation Development Group, parent of Generation Life, has entered the ASX 200, having grown its funds under management to almost $4 billion.
