Sullivan said a2 Milk’s balance sheet remains in good shape with almost $1 billion of cash and it’s expanding its supply chain capability, which was a headwind on its growth outlook.
Synlait rallied for another day, having reached a deal with a2 Milk last week over their disputed exclusivity arrangements, rising 9.6% to 40c. The yield on Synlait’s $180m of bonds maturing later this year dropped to 38% from 65% on Friday. The yield on the bonds rose as high as 179% in June.
Contact Energy was another company to report today, lifting operating earnings 16% and raising its dividend, while pointing to new generation coming on stream in the current financial year. The shares fell 0.9% to $8.90.
Mercury NZ rose 0.4% to $6.80 ahead of reporting on Tuesday, while Genesis Energy declined 0.2% to $2.295 and Meridian Energy was down 1.3% at $6.61 on a volume of 1.1 million.
Freightways rose 0.9% to $9.30 after reporting a 6.6% gain in annual earnings as the courier firm – often seen as an economic bellwether – navigated through the tough trading environment, and eyed lower interest rates for the coming year as supporting activity later in the period.
Exporters and other companies exposed to international trading were under pressure today as the Kiwi dollar rallied, rising to 60.80 US cents. Port of Tauranga dropped 4.1% to $5.38, travel software developer Serko declined 3.7% to $3.69, Napier Port declined 2% to $2.40 and Eroad fell 1.4% to $1.38.
Fonterra Shareholders’ Fund units posted the biggest gain on the benchmark index, rising 3.8% to $4.36, while commercial landlords remained in favour following last week’s rate cut as Precinct Properties NZ gained 3.5% to $1.345, Vital Healthcare Property Trust advanced 3% to $2.045 and Property for Industry increased 2.6% to $2.33.
Westpac Banking Corp rose 2.6% to $33.41 after reporting a solid June quarter where pressure on margins eased. ANZ Bank Group gained 2.3% to $32.80, while Heartland Group Holdings increased 2.7% to $1.15.
SkyCity Entertainment Group rose 0.6% to $1.58 after signalling an A$86.2m impairment charge on its Adelaide casino and refinancing its debt programme ahead of reporting on Thursday.
Would-be miner Santana Minerals surged 20.1% to $1.79, joining a rally among Australian mining stocks when the gold price rose above US$2500 an ounce.
Black Pearl Group jumped 14.5% to 95c after securing a $5m loan facility with Bank of New Zealand.
My Food Bag climbed 18.9% to 22c extending its rally after telling shareholders last week that its customer base had stabilised.
Arvida Group, which is under a takeover at $1.70, remained the most heavily traded stock with a volume of 2.5 million as it was unchanged at $1.64. Ryman Healthcare gained 0.4% to $4.90 on a volume of 1.4 million, while Auckland International Airport was unchanged at $7.58 on a volume of 1.3 million and Spark NZ declined 0.6% to $4.385 on a volume of 1.2 million.
