A2 CEO’s shock exit weighs on stock market
The S&P/NZX 50 Index dropped 46.61 points, or 0.4 percent, to 11,229.59. Within the index, 29 stocks fell, 17 rose, and four were unchanged. Turnover was $164.5 million.
A2 Milk fell as much as 7.7 percent, ending the day down 3.6 percent at $14.62 on a volume of 3.5 million shares. Chief executive Jayne Hrdlicka announced her exit from the firm after almost a year and a half, citing too much travel for her to manage her other commitments. Previous head Geoffrey Babidge, who oversaw the company’s transformation from a penny-dreadful to at times the country’s biggest listed company, was appointed acting chief executive while a replacement is sought.
“That was very much out of left-field – we saw the stock trade down as low as $14,” said Matt Goodson, managing director at Salt Funds Management. “They reiterated guidance and most importantly, talked about a 30 percent margin out in the medium term.”
Chorus fell 2.1 percent to $5.92. The telecommunications network operator has been repairing damaged lines from the South Island flooding, which saw more than 3,000 customers lose broadband and phone services over the weekend.
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