MARKET WRAP: NZ shares fall on A2 and Comvita losses
NZ shares fail to match overseas markets' gains.
New Zealand shares fell today as Comvita continued its plunge after an end to takeover talks, and A2 Milk took losses.
The NZX50 index fell 2.4 points to 8613.32, on turnover of $143 million.
“It’s a little disappointing because we had some pretty strong leads from offshore states,” says Hamilton Hindin Greene investment advisor James Smalley.
The Dow Jones was up 298.2 points, or 1.21%, to 25,013.29 today.
“We haven't really had a follow through on our markets,” says Mr Smalley.
On the local index, A2 Milk went down 33c to $10.71, while its supplier Synlait Milk dropped 2c to $10.28.
“We only generally get about a quarter of [A2’s] trading on the New Zealand market, so it does tend to reflect the view of international investors,” says Mr Smalley.
Comvita yesterday confirmed talks with a potential overseas bidder for the company had ended, and its shares fell 54c to $6.23. Today it extended that loss, falling 16c to $6.07.
“At this stage there's not going to be any sort of offer for the company,” says Mr Smalley.
Ryman Healthcare rose 20c to $11.60 and AMP went up 12c to $4.39. Oceania Healthcare climbed 2c, or 2%, to $1.02.
Steel & Tube went into a trading halt today, to complete a review of its finances that is "likely to impact on previously provided earnings guidance" for FY2018. Trading will commence tomorrow with the announcement of revised earnings guidance.
“The stock hasn't been a great performer, so it’s not like it’s been priced for great news but it will be a concern,” says Mr Smalley.
ANZ dropped 40c to $30.39 and Contact Energy fell 8c to $5.56.
Mackenzie Smith
Wed, 11 Jul 2018
Wed, 11 Jul 2018
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MARKET WRAP: NZ shares fall on A2 and Comvita losses
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