Big Wednesday: A2 squeezed over margins; Fletcher and Spark shine
The S&P/NZX 50 Index decreased 94.52 points, or 0.9 percent, to 10,709.32. Within the index, 14 stocks fell, 26 rose and 10 were unchanged. Turnover was $254.1 million, of which A2 and Spark accounted for $152.8 million.
Index heavyweight A2 sank 12 percent to $14.81, the lowest close since July 4, despite reporting 40 percent-plus gains in earnings and revenue. Investors traded 5.5 million shares of the stock, well up on its 90-day average of 718,000.
Matt Goodson, managing director at Salt Funds Management, said the result was in line with expectations, but margins were lower than expected as the firm lifts its marketing spend to pursue more growth.
"It's a stock that doesn't have many people who are neutral - it's either supporters or detractors," he said. That means it typically gets violent reactions in both directions, he said.
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