About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Tuesday, November 12th, 7:54PM
rss
The Markets

A2 downgraded on eve of earnings, Heartland misses expectations

New Zealand shares fell, with A2 Milk weaker after an analyst dubbed it overvalued and as weak Chinese sales by Australian supplements maker Blackmores weighed on the dairy company. Heartland Group declined on weaker-than-expected earnings.

Tuesday, February 19th 2019, 7:09PM

by BusinessDesk

The S&P/NZX 50 index decreased 21.18 points, or 0.2 percent, to 9,224.26. Within the index, 21 stocks fell, 23 gained, and six were unchanged. Turnover was $106.1 million, of which Spark New Zealand accounted for $45.1 million.

A2 fell 2.2 percent to $12.87 on slightly lighter than usual volumes of 989,000. It was caught by negative sentiment over Blackmore's warning over its Chinese business, and was also downgraded by an Australian broker. The milk marketing firm will report its first-half earnings tomorrow and is expected to deliver a 37 percent increase in underlying earnings.

"An Australian broker said the stock was overvalued and we saw some people take some profit," said Grant Williamson, a director at Hamilton Hindin Greene. "Given A2's weighting on our index it does weigh down the index."

A2 supplier Synlait Milk decreased 0.6 percent to $9.59, while Fonterra Shareholders' Fund units were up 0.2 percent at $4.62.

Heartland Group fell 1.5 percent to $1.32 on a volume of 750,000 shares, more than twice the 90-day average. The lender reported a 6.5 percent increase in first-half profit but trimmed its guidance for annual earnings due to listing, restructuring and foreign exchange costs. Williamson said it was a little bit below expectations.

Precinct Properties New Zealand's shares were halted at $1.54 pending a $130 million placement to institutional investors and a $20 million offer for retail investors. The proceeds will repay debt and fund some medium-term developments. The property investor announced increased first-half profit largely on revaluation gains.

Trustpower led the market lower, down 2.9 percent at $6.34 on a volume of 22,000 shares, less than half its average trading volume.

Spark was the most traded stock with 11.1 million shares changing hands, compared to its 3.8 million 90-day average. It fell 0.7 percent ahead of tomorrow's first-half earnings result. Sky Network Television and Fletcher Building were the only other stocks to trade on volumes of more than a million, shares and both are reporting tomorrow. Sky fell 1.1 percent to $1.75 while Fletcher gained 1.3 percent to $5.28.

Of other companies reporting tomorrow, Ebos Group rose 0.3 percent to $21.96 and Meridian Energy decreased 0.2 percent to $3.72.

Outside the benchmark index, NZME sank 8.5 percent to 48.5 cents after reporting a 44 percent slide in annual profit. That was due in part to extra investment in digital classifieds and online subscriptions, which it's hoping will generate new income streams to replace the structural decline in its cornerstone print operations.

PGG Wrightson fell 5.4 percent to 53 cents after warning earnings from its real estate, water, and retail rural supplies unit will be lower than a year earlier. Wrightson reports next week, but will eventually book a $120 million on the sale of its seeds unit once the transaction is settled.

Hallenstein Glasson decreased 2.1 percent to $4.28 after chief executive Mark Goddard unexpectedly left to spend more time with his family. The retailer's board has started looking for a replacement.

Tags: Market Close

« NZ shares subdued as China trade tensions weigh; Sky TV fallsNZ shares gain; A2 jumps to 12-month high as earnings outperform »

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
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 5.19 4.05 3.95 4.49
ANZ Special - 3.55 3.45 3.99
ASB Bank 5.20 4.05 3.95 4.39
ASB Bank Special - 3.55 3.45 3.89
BNZ - Classic - 3.55 3.45 3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
HSBC Premier 5.24 3.35 3.35 3.35
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 4.04 3.95 4.39
Kiwibank 5.80 4.30 4.20 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.55 3.45 3.89
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.25 4.15 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Lender Flt 1yr 2yr 3yr
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.86 3.89 3.94
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - ▼3.55 3.39 3.89
Sovereign 5.30 4.15 4.29 4.55
Sovereign Special - 3.65 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.49 3.59 3.89
The Co-operative Bank - Standard 5.15 3.99 4.09 4.39
TSB Bank 6.09 4.35 4.25 4.69
Lender Flt 1yr 2yr 3yr
TSB Special 5.29 3.55 3.45 3.89
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Westpac - Offset 5.34 - - -
Westpac Special - 3.55 3.45 3.99
Median 5.34 4.04 4.09 4.39

Last updated: 11 November 2019 4:01pm

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