by BusinessDesk
The S&P/NZX 50 Index fell 96.64 points, or 0.8%, to 12,751.67. Within the index, 30 stocks fell, 13 rose and seven were unchanged.
A2 Milk dropped back 3.3% to $7.72 giving back much of the gain made over the past five trading sessions, which saw the stock break briefly above $8. Investors appeared willing to take that recovery as a selling opportunity
Fisher & Paykel Healthcare was also subjected to another wave of selling, down 2.2% at $33.80 today, and is now 7.3% below its year-to-date high of $36.46 on April 29.
Equity analysts have mixed views on the valuation of the healthcare exporter, Forsyth Barr has given it a 12-month target price of $32.50 which may be prompting some investors to sell.
Meanwhile, Jarden sees the stock as having further to run with a target price of $36.10 due to a strong growth outlook and its position as the market leader in hospital products being entrenched during the pandemic.
Jarden expects net profit to be up 89% at $541 million in its full-year result later in May.
SkyCity Entertainment gave a presentation to Macquarie’s Virtual Investor Conference in which it reiterated it was unable to provide earnings guidance due to ongoing uncertainty from the pandemic and the New Zealand International Convention Centre.
Z Energy had the day’s biggest bounce, up 3.4% at $2.75. The fuel retailer is returning to paying dividends earlier than anticipated and despite a 35% drop in operating earnings in the year to March 31, caused by the covid-19 lockdowns and border closures.
For the year to March 31, Z produced a statutory profit of $57m, compared to an $88m loss in the prior year – at odds with what might have been expected.
Fonterra Shareholders’ Fund remained in a trading halt as the cooperative began a consultation process that could slash the number of shares that farmers need to hold and cap or shut down the Fund.
The kiwi dollar was trading 72.28 US cents at 3pm in Wellington, down from 74.92 cents yesterday.
The trade-weighted index was at 75.50 at 3pm, from 74.92 yesterday. The kiwi traded at 93.20 Australian cents from 92.71 cents, 79.03 yen from 78.40 yen, 60.18 euro cents from 59.65 cents, 51.97 British pence from 51.56 pence, and 4.6826 Chinese yuan from 4.xx yuan.
| « F&P Healthcare drags index lower | NZX50 dips slightly as investors react to Fonterra » |
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