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Mixed day on market for local shares

NZ Newswire logoNZ Newswire 11/01/2017 Sophie Boot

New Zealand shares were mixed, with A2 Milk Co jumping near the close after rival Bellamy's cut its forecasts, while Tourism Holdings and Summerset Group Holdings fell.

The S&P/NZX50 Index gained 32.02 points, or 0.5 per cent, to 7,069.6. Within the index, 20 stocks fell, 19 rose and 11 were unchanged. Turnover was $100.7 million.

The market is quiet with little news ahead of February's reporting season, David Price, broker at Forsyth Barr, said.

Markets across Asia were mixed, with Australia's ASX 200 up 0.2 per cent at 5:10pm local time, while Hong Kong's Hang Seng had gained 0.7 per cent and China's CSI 300 was down 0.5 per cent.

A2 Milk led the index, up 7 per cent to $2.28. The share price has been pushed around by news about its Australian competitor Bellamy's, which was placed in a trading halt in December.

On Wednesday, Bellamy's ASX-shares took a nose dive down 34 per cent to A$4.39 after it cut its profit forecast for the second time, announced chief executive Laura McBain is to leave and tweaked the terms of its supply contract with Fonterra.

Spark rose 1.8 per cent to $3.695, Genesis Energy gained 1.7 per cent to $2.12 and Meridian Energy advanced 1.5 per cent to $2.72.

ANZ was up 0.9 per cent to $33. It has sold UDC Finance to HNA Group for $660m, marking the Chinese company's first foray into New Zealand.

The deal is subject to various approvals and is expected to be completed late in the second half of the year, and will deliver a net gain to ANZ of $A100m, the lender said in a statement.

The sale price is $235m above UDC's net assets, or a price-to-book ratio of 1.6 times.

Tourism Holdings was the worst performer, down 1.8 per cent to $3.81, while Summerset Group Holdings fell 1.7 per cent to $4.60 and Arvida Group dropped 1.5 per cent to $1.30.

Kiwi Property Group fell 0.7 per cent to $1.43. Augusta Capital has dropped its High Court proceedings seeking orders requiring listed property investor NPT to call a meeting of shareholders to discuss its hostile bid, with a notice of meeting to be issued in February.

Augusta's proposal, along with an alternative deal from Kiwi Property which has won the backing of the target's board, will be put to shareholders at the meeting. NPT gained 1.5 per cent to 67 cents and Augusta rose 1 per cent to 98 cents.

Outside the benchmark index, Pushpay Holdings dropped 3.7 per cent to $1.81 and Hellaby Holdings rose 0.6 per cent to $3.54.

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