tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, November 1st, 10:39AM

Investments

rss
The Markets

a2 climbs as short sellers scared off

A2 Milk led the New Zealand share market higher for a second day after a positive earnings report from a competitor scared short sellers into closing their positions.

Thursday, October 14th 2021, 6:25PM

by BusinessDesk

The S&P/NZX 50 Index rose 23 points, or 0.2%, to 13,048.5. Turnover was $181 million.

Shares in infant formula exporter A2 climbed another 4.6% to $7.22 today, extending a rally from yesterday when the stock surged 12%.

A trading update from a smaller competitor yesterday reported an improvement to the all-important daigou channel which has been closed down during the pandemic.

One broking firm said in a note to clients the update was enough to scare some short sellers who pushed the price up as they closed their positions.

The share price surge has come at a good time for A2 Milk investors as the MSCI Standard Index will reassess which companies are eligible for index in the last 10 days of October.

A2 has been teetering on the edge of exclusion with its market capitalisation almost half what it was at the start of the year.

The index methodology is complicated and hard to predict for certain, but one estimate suggested the milk marketing firm could be excluded if it was trading much below $6.70.

If removed, index trackers may need to sell more than 50m shares, or $335m, which is 40x its average daily volume.

At its current market price of $7.22, the stock looks likely to retain its spot in the index which gives short sellers yet another reason to throw in the towel.

Shares in dual-listed Harmoney jumped 10.1% to $1.96 after the personal lender reported a record quarter, with loan originations up 390%.

The company has also broken even on its loan book, on a proforma basis, which chief executive David Stevens said demonstrated the value of its automated consumer-direct model.

Vital Healthcare Property Trust units declined 2.3% to $2.94 as it came off a trading halt having raised $115m in a capital raise priced at $2.90 per share.

The property investor will now seek to raise another $35m from existing unit holders.

Z Energy shares finished the day unchanged at $3.63, despite more than 10 million shares changing hands.

Growth investors were likely selling to buyers who were happy to accept the 5.5% return, assuming the Ampol takeover is successful.

One shareholder freeing up capital for greener pastures is the Accident Compensation Corporation which has sold a net 5 million shares for $16.7m since May.

ACC still holds a 7.1% stake in the fuel retailer, with a market value of $135m.

Tags: Market Close

« a2 shares spike as daigou returnsPassive funds sell millions of Contact and Meridian shares »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

AM Update - Your morning business news update

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼6.39 ▼6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.50 ▼6.19 ▼5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.17 5.79 5.69

Last updated: 30 October 2024 9:36am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com