About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Wednesday, December 12th, 11:30PM
rss
The Markets

A2 director sells; Fletcher overture rebuffed; market falls

New Zealand shares fell, led by A2 Milk Co, after one of the company's directors sold a small parcel of shares. Fletcher Building declined after surprising investors with a takeover bid for Steel & Tube Holdings.

Wednesday, October 3rd 2018, 6:05PM

by BusinessDesk

The S&P/NZX 50 index dropped 32.64 points, or 0.4 percent, to 9,293.95. Within the index, 24 stocks fell, 19 gained and seven were unchanged. Turnover was $136 million.

A2 led the market lower, falling 2.6 percent to $11.08 after disclosing director Peter Hinton sold 25,000 shares at $11.91 apiece on Sept. 26. The sale came in the wake of CEO Jayne Hrdlicka's share sale, which investors have criticised as being poorly communicated.

"It's a relatively immaterial percentage of his holdings, but it doesn't come out as particularly good coming after CEO Hrdlicka sold all of her shares," said James Lindsay, a senior portfolio manager at Nikko Asset Management.

Today's disclosure comes after Morningstar Research included the stock in its top 10 stock ideas for Australia and New Zealand. It said the recent price decline meant A2 stock was trading at a discount to the analyst's $14.60 fair value estimate.

Fletcher dropped 1.5 percent to $6.48 after its initial bid for steel products maker Steel & Tube was turned down as too low. Fletcher offered $1.70 a share, or $284 million, and has the support of shareholders with 20 percent of the company's stock. CEO Ross Taylor says he will keep pursuing the company, but was coy on whether he'll raise the bid.

Lindsay said the takeover bid was a surprise with other firms seen as more likely targets.

"The market was quite surprised that they would look to spend quite a lot of their capacity in bidding for Steel & Tube," he said.

Steel & Tube, which is outside the top 50, climbed 16 percent to $1.56, still below the non-binding offer.

NZX fell 0.9 percent to $1.08. The stock market operator is facing a dissident shareholder unhappy with its strategy. However metrics today showed it's getting more trading done through the official market. And it could attract a new listing with Hawke's Bay Regional Council recommending a partial sale and listing of Napier Port.

Port of Tauranga was unchanged at $5.16 and logistics firm Mainfreight gained 0.2 percent to $30.21. Scales Corp, which has orchards in Hawke's Bay, rose 0.6 percent to $4.93.

Pushpay Holdings posted the biggest gain for the day, up 1.3 percent to $4.05. The payments software developer yesterday disclosed Morgan Stanley ceased being a substantial shareholder on Sept. 27.

Air New Zealand gained 1.2 percent to $3.025 and Investore Property increased 0.7 percent to $1.55.

Among blue-chip stocks, Spark New Zealand increased 0.5 percent to $4.04, Auckland International Airport advanced 0.3 percent to $7.32, Fisher & Paykel Healthcare slipped 0.1 percent to $15.10 and Meridian Energy decreased 0.2 percent to $3.25.

Fonterra Shareholders' Fund units declined 0.8 percent to $4.81 after dairy prices fell at the latest GlobalDairyTrade auction.

Outside the benchmark index, Briscoe Group slipped 2 percent, or 7 cents, to $3.52 after shedding rights to an 8 cent per share dividend . Warehouse Group gained 0.5 percent to $2.08 after appointing local Facebook chief Will Easton to its board.

Tags: Market Close

« Shares slip on rising costs, dwindling business confidenceA2 still in the dog-box; Genesis, Akl Airport shed dividend rights »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • ASB appoints Vanguard as manager
    “What I find amusing from those industry participants who favour passive investing over active is their continued ignorance...”
    8 hours ago by Pragmatic
  • Law doesn't have to be broken for FMA to take action
    “Agree with Brent Sheather - NZ regulators suffer from what is formally termed 'regulatory capture'. A form of government...”
    13 hours ago by Chatterbox
  • ASB appoints Vanguard as manager
    “Pragmatic just going back 20 years to speak to you, I suspect the ASB’s value proposition is well diversified low cost...”
    13 hours ago by John Milner
  • CLU back on agenda for Massey
    “I'm delighted Massey has elected to do this. The initial efforts of Denis Sampson and others bringing it here from the US...”
    15 hours ago by Referee
  • Old approach won't always stack up
    “Thanks Steve for a thoughtful and moderate comment. I know Brian and the fact was that the client was happy. For the...”
    16 hours ago by MediCare
Subscribe Now

AM Update - Your morning business news update

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.79 4.55 4.79 4.99
ANZ Special - 4.05 4.29 4.49
ASB Bank 5.80 4.44 4.69 4.89
ASB Bank Special - 3.95 4.29 4.49
BNZ - Mortgage One 6.50 - - -
BNZ - Rapid Repay 5.95 - - -
BNZ - Special - 4.10 4.29 4.49
BNZ - Std, FlyBuys 5.90 4.69 4.79 4.99
BNZ - TotalMoney 5.90 - - -
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.15 5.20 5.25 -
Lender Flt 1yr 2yr 3yr
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.70 4.85 -
Housing NZ Corp 5.80 4.69 4.79 4.79
HSBC Premier 5.89 3.99 4.19 4.69
HSBC Premier LVR > 80% - 3.79 - -
HSBC Special - - - -
Lender Flt 1yr 2yr 3yr
ICBC 5.80 4.59 4.69 5.09
Kiwibank 5.80 4.55 4.69 4.99
Kiwibank - Capped - - - -
Kiwibank - Offset 5.80 - - -
Kiwibank Special - 4.05 4.29 4.49
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 6.10 5.10 5.45 -
Resimac 5.30 4.86 4.94 5.30
RESIMAC Special - - - -
SBS Bank 5.89 4.85 5.05 4.49
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 4.19 3.95 4.49
Sovereign 5.90 4.45 4.69 4.89
Sovereign Special - 3.95 4.29 4.49
The Co-operative Bank - Owner Occ 5.75 4.10 4.35 4.49
The Co-operative Bank - Standard 5.75 4.60 4.85 4.99
TSB Bank 5.80 4.45 4.69 4.99
TSB Special - 3.95 4.19 4.49
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.95 4.69 4.79 5.19
Westpac - Offset 5.95 - - -
Westpac Special - 4.15 4.29 4.59
Median 5.89 4.50 4.69 4.79

Last updated: 2 December 2018 8:39pm

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com