NZ shares drop as a2 Milk extends slide
Synlait and Kiwi Property Group lead the improvers
New Zealand shares fell as a2 Milk extended its decline and Fisher & Paykel Healthcare and Scales Corp dropped while Synlait Milk and Mainfreight rose.
The S&P/NZX 50 Index dipped 9.34 points, or 0.1 per cent, to 8635.86. Within the index, 24 stocks fell, 17 rose and nine were unchanged. Turnover was $144.7 million.
A2 Milk led the index lower, falling 2 per cent to $10.55. The stock has been dropping for two weeks after it missed expectations in a trading update, prompting some analysts to reassess what have been optimistic assumptions for the company’s outlook. A2 will join the MSCI Global Standard Index tomorrow when that index is rebalanced. F&P Healthcare dropped 1.4 per cent to $13. The company lifted 2018 annual profit to the top end of its forecast range and said it expects record earnings in the coming year as it benefits from growing global demand.
Scales Corp fell 0.8 per cent to $4.70 and Z Energy declined 0.7 per cent to $7.40. Synlait was the best performer, up 1.6 per cent to $10.55, and Kiwi Property Group rose 1.5 per cent to $1.40. Gentrack Group rose 1.4 per cent to $7.45 ahead of its earnings announcement today. Lister said the market was obviously expecting a good result, with the company having given positive recent updates.
Mainfreight gained 1.2 per cent to $26.05. It posted a 6.3 per cent gain in full-year profit on a record result in New Zealand and growth in Australia and said the strong performance meant it would pay record bonuses to its managers. Arvida Group gained 0.8 per cent to $1.30.
Outside the benchmark index,
AWF Madison Group gained 7.1 per cent to $1.95. The contract labour firm reported a 14 per cent fall in annual profit, even as revenue rose, with its white-collar recruiting business improving while there was weakness from construction recruitment.
Pacific Edge dropped 12.5 per cent to 28 cents. It narrowed its full-year loss by 13 per cent on improving revenue as more urologists and healthcare organisations adopt its Cxbladder cancer diagnostics tests.
Turners Automotive Group rose 2.1 per cent to $2.99. The second-hand vehicle retailer posted a 33 per cent gain in full-year profit as it leveraged its position to provide more finance and an expanded insurance offering.