Market commentary

WELLINGTON: Global marketer a2 Milk could not convince investors it was on a solid path to recovery and it plunged more than 11% on a flagging New Zealand sharemarket.

The dairy nutrition company presented a soft shortterm outlook and fell 81c or 11.34% to $6.33 on trade worth $23.6 million, dragging the S&P/NZX 50 Index down 55.15 points or 0.42% to 13,020.26.

Trading volume improved with 42.88 million shares worth $195.33 million changing hands.

The a2 Milk Company held its longawaited Investor Day and prepared an extensive 160page presentation entitled "Adapting for Growth".

The information investors were looking for — the 2022 update — appeared on page 157: ‘‘There has been no material change to the fullyear position as outlined in August. However, a2 Milk is seeing a different mix in its business, favouring Englishlabel infant milk formula.’’

The company has set a target of growing sales to more than $2 billion within five years, from the preset $1.2 billion.

Synlait Milk, whose biggest customer is a2 Milk, fell 11c or 2.97% to $3.59. Greg Smith, head of retail for Devon Funds Management, said Synlait was down in sympathy with a2 Milk, and it was looking to diversify and reduce its reliance on a2.

Rubberware manufacturer Skellerup Holdings, a quiet achiever with global distribution, rose 15c or 2.56% to $6 after telling shareholders at its annual meeting that it had made a strong start to the 2022 financial year. Skellerup said its net profit for the first half would be more than 10% ahead of the same period last year.

Chorus, which also held increased 9c to $6.32.

Fisher and Paykel Healthcare was up 33c to $30.94; Pushpay Holdings increased 5c or 2.78% to $1.84; Seeka gained 18c or 3.49% to $5.34; Sky Network Television was up 4c or 2.17% to $1.88; and Vista Group jumped 9c or 3.61% to $2.58.

Tourism Holdings picked up 8c or 2.97% to $2.77; Scott Technology rose 6c or 1.9% to $3.21; Marsden Maritime Holdings increased 15c or 2.34% to $6.55; and PGG Wrightson was up 21c or 4.9% to $4.50.

Mainfreight fell a further $1.11 to $87.50 on profittaking; Ebos Group decreased 40c to $35.45; Restaurant Brands was down 28c or 1.82% to $15.11; South Port New Zealand declined 23c or 2.42% to $9.27; and Solution Dynamics shed 6c or 2.04% to $2.88.

Meal kit company My Food Bag continued its slide, falling 3c or 2.48% to a new low of $1.18. Medicinal cannabis firm Greenfern Industries fell 6c or 18.75% to 26c, close to last week's listing price of 25c. — its annual meeting,