Milk firms lead retreat in light trading
Fletcher extends gains but broker says market quiet ahead of holiday
New Zealand shares were mixed in light trading ahead of today’s public holiday, with A2 Milk Co and Synlait Milk continuing to weaken while Fisher and Paykel Healthcare rebounded and Fletcher Building extended gains.
The S&P/NZX50 Index dropped 14.98 points, or 0.2 per cent, to 8288.64. Within the index, 21 shares rose, 20 fell and nine were unchanged. Turnover was $100 million, with the index trading lightly ahead of Anzac Day, which will see the NZX and ASX exchanges closed, and as New Zealand school holidays continue.
“It’s very quiet again, not a lot of movement across the board.
“A lot of investors do take most of the week off, so it can be quite disruptive,” said Grant Williamson, director at Hamilton Hindin Greene.
Leading the index was Fisher and Paykel Healthcare, up 1.9 per cent to $12.20. The stock hit a seven-month low of $11.97 on Monday and has dropped 14 per cent so far this year.
“It was a little bit firmer, the shares have been weakening for a while now and it has really come off the boil but it’s showing a bit of strength today,” Williamson said.
Trade Me Group gained 1.4 per cent to $4.47 and Fletcher Building rose 1.3 per cent to $6.28.
A2 Milk was again the worst performer on the index, dropping 3 per cent to $12, with its supplier Synlait Milk falling 2.6 per cent to $9.56.
Both stocks have been weakening since Nestle announced it has launched a competing A2 milk protein infant formula in China, with investors unsettled by competition in the market.
Z Energy fell 1.7 per cent to $7.10, Infratil declined 1.4 per cent to $3.16 and Trustpower was down 1.4 per cent to $5.66.
Outside the benchmark index, dual-listed AMP shares dropped 3.6 per cent to $4.33. In Australia, the wealth manager has come under fire over revelations about its conduct made at a Royal Commission public inquiry. Chief executive Craig Meller quit on Friday over the scandal.
— BusinessDesk