NZX50 slides as investors clear the decks for $525m Contact capital raising
New Zealand’s S&P/NZX 50 index was one of the laggards across Asia, with Meridian Energy, Genesis Energy and Mercury NZ all declining as investors cleared their portfolios to take part in Contact Energy’s $525 million capital raising.
Contact was among companies reporting, with a2 Milk Co rallying after beating earnings expectations as it continued to gain market share in China, while Freightways advanced as it eked out a fatter margin and delivered an increased dividend.
Interest rate sensitive companies such as Ryman Healthcare, Argosy Property and Goodman Property Trust declined ahead of the Reserve Bank’s policy review on Wednesday, which economists predict will indicate rates will start rising later this year.
And retailers including KMD Brands and Briscoe Group were broadly weaker after Statistics New Zealand figures showed an unexpectedly large decline in consumer spending on credit and debit cards in January, with the rough weather muddying the waters.
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