Synlait Milk and Mainfreight take hit, pulling NZ sharemarket down
Hamilton Hindin Greene investment adviser Jeremy Sullivan said the manufacturing issues could potentially lead to delays in a2 Milk getting its product to market.
'The new chief executive for Synlait came out and said 'we don't expect to need any more capital and we're well within our competences' and tried to reassure investors, but investors are voting with their feet,' Sullivan said.
Synlait's share price fell 7.69% to $0.60, while a2 Milk shares dipped 1c to $8.80.
Mainfreight's annual shareholders' meeting was met with a poor response from investors, after the business said it had a slow and disappointing start to the financial year.
Its share price fell late in the day by $6.36 or 9.58% to $60.00 after $8,860,473.66 worth of shares traded hands.
Elsewhere, the Government gave the green light for Kiwibank to raise up to $500m of capital to help the bank grow.
Sullivan said the market would keenly welcome the move and the Government would likely get a good price for it as well.
'Look at the likes of the gentailers and how well that's actually worked out in terms of the Government maintaining their controlling stake in the businesses and the share prices. They got their cake and got to eat it too.'
Air New Zealand announced it had found its replacement for outgoing chief executive Greg Foran, with current chief digital officer Nikhil Ravishankar appointed as his successor.
Its share price remained flat on 58c after the announcement.
Meanwhile, Ryman Healthcare's share price rose 1.22% or 3c to $2.49. following its annual shareholder meeting.
Ryman chief executive Naomi James highlighted the changes the business is making to turn its fortunes around.
Ryman had 903,906 shares change hands to the value of $2,242,196.08.
Sullivan said to look out for Microsoft's earnings result, expected overnight tonight.
International market
Wall Street stocks retreated on Tuesday (local time) as markets digested major merger announcements and monitored US-China trade talks ahead of big-tech earnings later in the week.
Representatives from Beijing and Washington signalled further talks were likely after a round of negotiations in Stockholm. However, a top US trade official emphasised President Donald Trump would make any 'final call'.
Meanwhile, investors digested several significant earnings reports, as well as merger announcements in the rail and energy sectors ahead of major economic news catalysts later in the week.
'After reaching all-time highs, markets are going to take a wait and see attitude,' said Art Hogan of B. Riley Wealth Management.
The Dow Jones Industrial Average finished down 0.5% at 44,632.99.
The broad-based S&P 500 shed 0.3% to 6,370.86, while the tech-rich Nasdaq Composite Index declined 0.4% to 21,098.29.
Both the S&P 500 and Nasdaq had finished at record levels the previous day.
– Additional reporting AFP
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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