Dairy stocks whacked on a2 Milk downgrade
The S&P/NZX 50 Index dropped 72.74 points, or 0.6%, to 12,659.01. Turnover across the broader market was $166.8 million, with 69 stocks of the 186 listed securities declining and 68 rising.
A2 led the benchmark index lower, falling 12.8% to $6.62, its lowest since October 2017. The milk marketing firm now expects annual sales of $1.2 billion-to-$1.25b in June year and has halved projected profit margins to between 11% and 12% as it writes off excess inventory.
“It was worse than what the market expected, even though the market was aware, to a degree, of the potential for another downgrade to come through, said Grant Davies, an investment adviser at Hamilton Hindin Greene.
“A2’s still big enough to drag the NZ market down.”
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