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Shares of A2 Milk ended the day down 7.5% at $5.21. Photo / 123RF
A2 Milk Shares had a tough day and fell 11% this morning on news that they would not be sending infant formula to the lucrative US market in the near future.
The dairy company
told NZX that the U.S. Food and Drug Administration (FDA) is deferring consideration of the company’s request for enforcement discretion to import infant formula into the United States. The shares fell 11% to $5.01 at the New Zealand market open, but made up some lost ground throughout the day, ending down 7.5% at $5.21. .
The S&P/NZX 50 Index was flat at 11,752.09. Revenue on the main draw was $106.6 million.
Mark Lister, head of private wealth research at Craigs Investment Partners, said A2 shares had seen “a bit of cold water” on the prospect of FDA approvals.
Shares of A2 surged last week on an Australian report that approval could be imminent and while A2 was quick to dampen expectations, shares were still at $5.64 on Friday.
He said A2’s share price skyrocketed last week due to speculation that the company had access to the US market and that the share price was now back to where it was before. the start of speculation.
“All that’s really happened is he’s giving back a lot of that gain he made the other day,” he said.
Milk Synmilk also fell 1.5% to $3.26 by the end of the day.
contact energy dipped 0.13% to $7.66 after it announced it had accepted the resignation of big four accounting organizations KPMG, which has been the company’s external auditor since 2005.
The power producer told NZX that the decision to change auditors “does not affect KPMG’s performance in any way”, but the company considers it good corporate governance practice for a company to change. listener from time to time. Professional services firm Ernst & Young (EY) has been appointed as the group’s new external auditor – on the same day that Contact Energy’s financial year began, 1 July.
Other energy actions across the board had a mixed day – Time Energy rose 0.66% to $6.10, meridian energy rose 0.19% to $5.25 and Genesis Energy fell 1.9% to $2.92. Mercury also jumped 2.26% to $6.55.
telecommunications company Spark fell 0.10% to $5.12. Spark revealed that it had to reimburse more than $15 million to nearly 113,000 customers after they were billed for a cable maintenance service they either didn’t need or couldn’t use or that they couldn’t use. could not benefit. The Commerce Commission had begun investigating the phone company in 2020 after a customer complaint.
Spark said it had provided the regulator with enforceable undertakings that committed it to reimbursing all affected customers and had already repaid around $15 million – with $348,757.92 remaining to be repaid to 4,921 customers.
Rival Telecom Chorus also fell 0.38% to $7.85 by the end of the day. Other index decliners were Vulcan Steel, which fell 2.8% to $9.72, and Chatham Rock Phosphate fell 8.6%, to 32 cents.
Millennium and Copthorne Hotels fell 4.4% to $2.19 after its half-year results were released today. The company told the market that if the Covid-19 pandemic continues to weigh on its lodging business, it expects to turn a yearly profit on the strength of its property development arm.
CDL Investments, a subsidiary of Millennium & Copthorne Hotels (MCK), also released its half-year results today and the company’s shares fell 1.2% to 84 cents in the early evening. CDL Chairman Colin Sim said the company was still committed to matching full-year 2021 revenue, even though the past six months had seen a “dramatic” change in the business environment. The company’s revenue for the six months ended June was $47.8 million, compared to $61.3 million in 2021.
Stocks that had a good day today included Moving logistics which rose 6.7% to $1.27, my bag of food which lifted 5.1 percent to 82 cents and the market regulator NZX also rose 3.3% to $1.25.
On the currency front, the New Zealand dollar was trading at 62.88 US cents at 5 p.m., down from 62.76 on Tuesday.
– Business office