You are using an older browser version. Please use a supported version for the best MSN experience.

NZ shares gain, led by A2 Milk, Sky TV

NZ Newswire logoNZ Newswire 6/03/2017 Sophie Boot
Milk produced by a2 Milk Co. is poured into a glass © Brendon Thorne / Bloomberg Milk produced by a2 Milk Co. is poured into a glass

New Zealand shares rose on Monday, with A2 Milk and Sky Television recovering from sell-offs, while Ryman Healthcare and Chorus declined.

The S&P/NZX50 Index gained 17.86 points, or 0.2 per cent, to 7,178.73. Within the index, 28 stocks rose, 15 fell and seven were unchanged. Turnover was $102.3 million.

A2 Milk led the index, up 4.6 per cent to $2.51.

The stock reached a record $2.60 before reporting its first-half earnings on February 15, where it more than tripled first-half profit to $39.4 million as demand for its A2 Platinum infant formula surged in its key Australia, New Zealand and China markets.

"Clearly there were quite high expectations going into the result, and the share price rallied before that," said Craig Stent, director and research analyst at Harbour Asset Management.

"As a consequence, despite them beating expectations and guiding up to a higher earnings, it sold off post result. So perhaps we're seeing people saying actually, this is a pretty good result so why aren't we buying this."

Sky TV rose 2.8 per cent to $3.71. It was trading at $4.35 before February 23, when the Commerce Commission rejected its proposed merger with Vodafone. The shares plunged by as much as 17 per cent on the day and had continued to weaken before Monday.

Freightways gained 2.4 per cent to $7.25, Meridian Energy rose 2 per cent to $2.79, and Westpac advanced 1.5 per cent to $36.90.

Ryman Healthcare was the worst performer, dropping 3.2 per cent to $8.61. Mr Stent said quarterly rebalancing of the MSCI indices had played a part in the fall.

Abano Healthcare was unchanged at $8.90. Peter and Anya Hutson and James Reeves' latest attempt to wrest control of Abano has failed, with the partial takeover falling well short of the 50.01 per cent level needed.

image beaconimage beaconimage beacon