Synlait’s cautious recovery pleases market
After a down-day on Wall Street, the S&P/NZX 50 Index slid from the opening but perked up mid-afternoon to close at 12,999.72, down 24.98 points or 0.19%. The index reached an intraday low of 12,937.35.
Just 17.99 million shares worth $41.69 million changed hands. Jeremy Sullivan, investment adviser with Hamilton Hindin Greene, said “with our largest city on holiday, the market had reduced volumes and not a lot could be read into some of the moves”.
Trading in Synlait Milk continued to improve – 1.07m shares worth $601,000 – as investors reacted warmly to its improved earnings update on Friday. Synlait was up a further 8c or 16% to 58c, a rise of 35% in two trading days.
Sullivan said Synlait is showing encouraging signs with the cost-cutting working for them. The company is coming off a low base and capital raise and the market is taklng that into account.
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