a2 sends NZX 50 to 4-month low

The S&P/NZX 50 Index fell 141 points, or 1.2%, to 12,140.66. Within the index, 23 stocks fell, 25 rose and two were unchanged. Turnover was $184 million.

Former-market darling A2 Milk was responsible for the bulk of the index’s decline, with investors trading more than $56m worth of stock. 

“A2 has tipped us into correction territory today, we’re more than 10% off the high on Jan 8,” said Jeremy Sullivan, an investment advisor at Hamilton Hindin Greene.

The infant formula exporter dropped 16.1% to $9.34 after it lowered its revenue guidance to $1.4 billion. In only November last year, the firm had said revenue could be as high as $2b.