Shares plummet as A2 shocks market

The S&P/NZX 50 Index fell 206.77 points, or 1.6 percent, to 12,682. Within the index, 32 stocks fell, 16 rose and two were unchanged. Turnover was $408.5 million, as S&P/NZX and FTSE Russell indices had their quarterly rebalance.

Investors wiped $2.3 billion from A2 Milk’s market capitalisation as they dumped their shares after it slashed full-year revenue guidance by about 20 percent.

Shares fell in proportion to the revenue cut, dropping 22.1 percent to $11 with 5.8 million shares changing hands. The stock has traded as high as $21.74 cents this year.

“There is no sugar coating it, it is a terrible update,” said Mark Hampton, an investment adviser at Hamilton Hindin Greene.