Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


A2, Synlait drop more than 20% from recent highs

A2, Synlait drop more than 20% from recent highs, dragging index lower

By Sophie Boot

Nov. 8 (BusinessDesk) - A2 Milk Co and Synlait Milk are coming in for a correction with both stocks down more than 20 percent from recent peaks, dragging the S&P/NZX50 Index lower.

Around 11.15am today, A2 sank 9.5 percent to $6.90, while Synlait had dropped 11 percent to $6.45. The benchmark index had fallen 0.9 percent to 7,977.72, the first time the NZX50's been below 8,000 in more than a month. The two stocks began falling on Friday, with A2 having dropped 18 percent since then and Synlait down 19 percent.

Grant Williamson, a director at brokerage Hamilton Hindin Greene, said both stocks were seeing a good size correction "which was always going to happen" after their rapid gains this year. A2 is still up 260 percent year to date, while Synlait has gained 133 percent.

A2 has declined 21 percent from its record $8.75 on Oct. 30, while Synlait has fallen 22 percent from its record $8.24 the same day. A2's rapid ascent made it one of the largest stocks on the local index, and its losses today puts "quite a weight" on the benchmark index, Williamson said.

"Synlait is very much just following A2, they're joined at the hip to some extent," Williamson said. "In these stocks, you get a bit of selling and it's followed by more selling - it doesn't take much. It's difficult to know where it's going to bottom out."

Williamson said high volumes through A2 showed the selling wasn't limited to retail investors, but also included large institutions, and volumes would increase when the Australian share market opens at midday New Zealand time.



© Scoop Media

Business Headlines | Sci-Tech Headlines


Government: Delivering Lower Card Fees To Business

Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses ... More>>

SEEK NZ Employment Report: April 2021

OVERVIEW OF APRIL 2021: STATE OF THE NATION: April, for the second consecutive month, saw the highest number of jobs ever advertised on Applications per job ad fell 9% month-on-month (m/m). SEEK job ads were up by 12% m/m. SEEK job ads were ... More>>

Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

Stats: Lower Job Security Linked To Lower Life Satisfaction

People who feel their employment is insecure are more likely than other employed people to rate their overall life satisfaction poorly, Stats NZ said today. New survey data from the March 2021 quarter shows that 26 percent of employed people who thought ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>