Fletcher slumps to 9-yr low on profit warning
The S&P/NZX 50 index dropped 72.63 points, or 0.8 percent, to a three-week low of 8,720.30. Within the index, 21 stocks fell, 20 gained, and nine were unchanged. Turnover was $180.8 million, of which A2 Milk accounted for $41.9 million and Fletcher made up $24.2 million.
Fletcher Building was the day’s biggest decliner after it announced first-half operating earnings will be 10 percent lower than last year. The shares fell 11 percent, or 62 cents, to $4.93, its lowest level since the depths of the GFC in 2009. It was the most traded stock with 4.8 million shares changing hands.
But Nigel Scott, an investment adviser at Craigs Investment Partners, says Fletcher isn’t alone.
“If you look at Boral, James Hardie, Lend Lease, Adelaide Brighton, their charts look remarkably similar,” Scott said, adding that story is about the weak Australian housing market.
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