Dairy decline pulls market lower; A2 leads the way

The S&P/NZX 50 Index fell 60.2 points, or 0.5 percent, to 11,742.09. Within the index, 23 stocks fell, 20 rose and seven were unchanged. Turnover was $177.7 million.

Dairy stocks led the decline as A2 Milk Co dropped a further 4.9 percent to $15.84, adding to its 9.7 percent fall yesterday.

Brad Gordon, an investment adviser at Hobson Wealth Partners, said the market was sceptical the company will achieve its full-year guidance of $1.8 billion after downgrading its first half sales forecast to a mid-point of $750 million.  

“That implies second half earnings of $1.1 billion — that’s a big jump,” he said. “The market fears another downgrade basically.”