MARKET WRAP: A2 continues to rise as Fletchers falls
New Zealand shares gained today, spurred by strong performances from A2 Milk and Ryman Healthcare.
The S&P NZX 50 index was up 24 points to 8618, on turnover of $93 million.
Fat Prophets head of research Greg Smith says it was the “usual suspects” in terms of the gainers and losers, with A2 Milk rising and Fletcher Building falling.
Mr Smith says investors continue to like A2’s story and don’t seem to be worried about Nestle “crashing its party” in China.
A2 shares were up 1.02% to $12.88.
Mr Smith says Fletcher Building is “still having problems”.
“We’ve seen some comments lately that the bottom might be in the stock.”
Its shares dropped 1.53% to $6.43.
Metro Performance Glass shares were down 3.53% to 82c.
Mr Smith says its stocks might see more pressure going forward.
“We are past the biggest stage of the boom and have been exiting some of our construction plans, so watch this space.”
Vector shares were also down, falling 0.62% to $3.21 after chairman Michael Stiassny said he will step down from the board of the Auckland utility company in September.
Westpac’s run came to an end after saying on Monday its cash earnings for the six months ended March rose 4.1% year-on-year to $482 million.
Shares in the bank were up 25c to $31.90 yesterday, but today fell 0.62% to $31.72.
Evolve Education continues its surge, after announcing last week it expects net profit after tax, before non-recurring items, to come in at about $12 million for the financial year ended March 31, 2018.
The early childcare provider has taken a beating on the exchange lately and finally has a reason to smile. Shares were up 12.73% to 62c.
Mr Smith says Trump’s decision to exit the nuclear accord with Iran might have an impact on New Zealand exports to Iran.
He expects the market to quieten in the leadup to the government’s budget announcement next week.