Sharemarket extend gains as A2 buoyed by trade data
The S&P/NZX 50 Index increased 29.98 points, or 0.3 percent, to 10,418.29. Within the index, 25 stocks rose, 17 fell, and eight were unchanged. Turnover was $135.7 million.
A2 rose 2.7 percent to $14.62, leading the market higher, on a volume of 1 million shares, more than its 90-day volume of 812,000. The milk marketing firm had been under pressure in recent days on fears that the way Chinese authorities apply new e-commerce rules could hit the firm, given its exposure to China's formula market.
Matt Goodson, managing director at Salt Funds Management, said strong Lyttelton Port data today helped ease some of those fears hanging over the company.
"There's been some concerns around that stock with the tightening of the application of Chinese e-commerce laws, which may affect some of the lower end daigou," he said. "In some ways that plays to A2's advantage. They tend to deal more through corporate daigou, but it's been a source of uncertainty in the market."
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
