Synlait shares slump on record milk price

The S&P/NZX 50 Index fell 17.82 points, or 0.1%, to 13,075.4. Turnover was $135 million – still quiet after the long weekend. 

Sky Network Television led the market lower, falling 4.2% to $1.84, followed by Synlait Milk which will have to match Fonterra’s high price to buy milk from farmers. 

The dairy processing firm fell 2.6% to $3.70 as investors factored in its increased cost of doing business. 

Its lead customer A2 Milk – which is also under pressure from class-action lawsuits – declined 0.6% to $7.14, while Fonterra Shareholders’ Fund units declined 0.3% to $3.96.