Fonterra Fund leads NZX higher
The S&P/NZX 50 Index increased 15.31 points, or 0.2 percent, to 9,415. Within the index, 22 stocks rose, 20 fell, and eight were unchanged. Turnover was $189.7 million, of which Fletcher Building accounted for $52.5 million.
Fonterra Fund units rose 2.6 percent to $4.41, on a volume of 197,000, about half its 90-day daily average. The units hit a record low last week after Fonterra downgraded its earnings forecast and canned plans for an interim dividend. However, they've recovered over the last few days after Miles Hurrell was confirmed as permanent chief executive, and after the Global Dairy Trade auction showed a sharper increase in dairy prices than expected.
Peter McIntyre, an investment adviser at Craigs Investment Partners, said the increased milk price is an added cost for Fonterra and will add pressure on earnings, which the fund's exposed to.
"However, investors might be looking at Fonterra's outlook," he said.
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