NZ shares gain; A2 jumps to 12-month high as earnings outperform
The S&P/NZX 50 index increased 25.18 points, or 0.3 percent, to 9,249.44. Within the index, 20 stocks rose, 26 fell, and four were unchanged. Turnover was $169.1 million, of which a2 accounted for $51.8 million.
Four of the country's 10 biggest listed companies reported first-half earnings with mixed results today. A2 came in ahead of forecast as it delivered a 55 percent increase in first-half profit with a 41 percent lift in sales. The stock jumped 10 percent to $14.22 on a volume of 3.7 million, compared to the 1.1 million 90-day average.
Matt Goodson, managing director at Salt Funds Management, said the result beat estimates on all lines, even with increased marketing expenditure.
"It looks like a very solid result and for the uber-bulls on it there were signs of progress in the very large American market with liquid milk," Goodson said. "It will obviously be loss-making for some time but they're really starting to grow volumes there."
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