A2 downgraded on eve of earnings, Heartland misses expectations
The S&P/NZX 50 index decreased 21.18 points, or 0.2 percent, to 9,224.26. Within the index, 21 stocks fell, 23 gained, and six were unchanged. Turnover was $106.1 million, of which Spark New Zealand accounted for $45.1 million.
A2 fell 2.2 percent to $12.87 on slightly lighter than usual volumes of 989,000. It was caught by negative sentiment over Blackmore's warning over its Chinese business, and was also downgraded by an Australian broker. The milk marketing firm will report its first-half earnings tomorrow and is expected to deliver a 37 percent increase in underlying earnings.
"An Australian broker said the stock was overvalued and we saw some people take some profit," said Grant Williamson, a director at Hamilton Hindin Greene. "Given A2's weighting on our index it does weigh down the index."
A2 supplier Synlait Milk decreased 0.6 percent to $9.59, while Fonterra Shareholders' Fund units were up 0.2 percent at $4.62.
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