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

Shares rise as A2 Milk hits fresh record

NZ Newswire logoNZ Newswire 16/06/2017

NZ shares gained on Friday as A2 Milk Co rose to a record after upgrading its sales guidance again, and Fletcher Building advanced.

But Tegel Group Holdings fell as it left the benchmark index.

The S&P/NZX 50 Index rose 36.4 points, or 0.5 per cent, to 7552.75. Within the index, 26 stocks rose, 21 fell and three were unchanged. Turnover was $279 million.

A2 Milk was the best performer, up 8.2 per cent to $3.85, a record high.

The milk marketer lifted annual sales guidance for the second time in as many months as it beefed up production to meet Chinese demand for infant formula.

NZX signage  in Wellington.  (File photo) © Hagen Hopkins/Getty Images NZX signage in Wellington. (File photo) It expects revenue to be $545 million in the 12 months ending June 30, a $20m increase from its April update which was itself an upgrade. A2 reported annual revenue of $352.8m in 2016.

The NZX 50 Friday saw Tegel leave, replaced by CBL Corp.

Fletcher Building rose 3.4 per cent to $7.95.

"There's no particular news so perhaps flow coming out of some index changes, but obviously it's been under very heavy pressure in recent times," Matt Goodson, managing director at Salt Funds Management, said.

"There's concern as to whether there are any lingering issues in their construction division."

Ryman Healthcare rose 0.8 per cent to $8.40. The company, whose retirement village portfolio was valued at $3.66 billion as at March 31, has secured a 4.5-hectare site in Henderson, West Auckland.

Tegel dropped 0.9 per cent to $1.12 and has declined 22 per cent this year.

"Its exit is well known and anticipated, the fundamental story matters a lot more for Tegel. Clearly, chicken prices have been very weak for some time, on oversupply from each of the key players really," Mr Goodson said.

Outside the benchmark index, Synlait Milk gained 1.8 per cent to $4.05. The NZX-listed dairy company lowered its forecast payout following a "significant drop in the dairy market".

image beaconimage beaconimage beacon