Second class suit stops A2 in its tracks

The milk marketing firm posted the day’s biggest decline on the S&P/NZX 50 Index, down 2.6% at $7.48, having been on a tear in recent weeks as investors slowly regained confidence that China’s informal daigou channel was on the mend. Supplier Synlait Milk fell 0.5% to $3.80.

A2 Milk noted reports that Shine Lawyers is investigating a potential class action against the firm, but hasn’t been notified of any case. It already faces a claim filed by Slater & Gordon Lawyers.

“Investors had a little bit of good news over the last few weeks but the handbrake’s been put back on again today,” said Grant Davies, an investment adviser at Hamilton Hindin Greene.

The NZX50 increased 11.74 points, or 0.1%, to 13,125.98, in relatively quiet trading with turnover of $129 million across the broader market.