Record for A2 Milk, gain for Fletcher help boost share prices

New Zealand shares gained as A2 Milk hit a record after upgrading its sales guidance again, and Fletcher Building advanced, while Tegel Group Holdings fell as it left the benchmark index.

The S& P/ NZX 50 Index rose 36.4 points, or 0.5 per cent, to 7552.75. Within the index, 26 stocks rose, 21 fell and three were unchanged. The turnover was $ 279 million.

A2 Milk was the best performer, up 8.2 per cent to $ 3.85, a record. The milk marketer lifted annual sales guidance for the second time in as many months as it beefed up production to meet scorching Chinese demand for infant formula. It expects revenue to be $ 545m in the 12 months ending June 30, a $ 20m increase from its April update.

“It i s clearly hitting the spot in what is a vast market,” said Matt Goodson, managing director at Salt Funds Management.

Fletcher Building cent to $ 7.95.

“There’s no particular news so perhaps [ it’s] . . . coming out of some index changes, but obviously it’s been under very heavy pressure in recent times,” Goodson said. “There’s con- rose 3.4 per cern as to whether there are any lingering issues in its construction division, and it does have a reasonable amount of housing exposure, and clearly housing sales have slowed to a crawl in the market though prices are still holding up relatively well.”

Trustpower rose 3.2 per cent to $ 5.45 and Metro Performance Glass gained 3 per cent to $ 1.38.

Ryman Healthcare rose 0.8 per cent to $ 8.40. The company has secured a 4.5ha site in Henderson, West Auckland, to target an area it says is under- supplied with options.

Property For Industry gained 0.3 per cent to $ 1.65. The Shareholders’ Association will be voting in favour of PFI’s plans to buy its “very unusual” external management contract for $ 42m, which will cut costs for the industrial property investor. The vote will be held at its annual meeting on June 22.

Vista Group International was the worst performer, down 3.5 per cent to $ 5.75, while Sanford dropped 2.2 per cent to $ 6.70 and SkyCity Entertainment Group fell 1.8 per cent to $ 4.40.

Tegel dropped 0.9 per cent to $ 1.12 and has declined 22 per cent this year.

“Clearly, chicken prices have been very weak for some time, on oversupply from each of the key players. It’s a question of if and when that comes to an end,” Goodson said.

Outside the benchmark index, Synlait Milk gained 1.8 per cent to $ 4.05.

Veritas Investments was unchanged at 25c, and has gained 25 per cent so far this year.