A2 Milk remains in influential MSCI index, for now
12 May, 2021 01:20 AM
4 minutes to read
A2 Milk has remained in the influential MSCI index. Photo / NZ Herald
A2 Milk has remained in the MSCI index, which is used extensively by exchange traded funds to weight their investments, but its days of being part of the influential benchmark may be numbered. The alternative milk company s shares have languished in recent months after peaking at $21.50 last August as its profitability became increasingly challenged, giving rise to speculation that it may be removed from the index.
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The index is reviewed quarterly - in February, May, August and November.
Williams said Nikko sold a2 Milk shares on Monday, extending its underweight position in the stock.
STUFF
Milk has been through a lot of changes over the years. A2 Milk plans to rebalance its inventory by reducing the amount sold through the daigou and reseller sales channels for the remainder of this financial year, and potentially into the first quarter of next year. It also plans to destroy an estimated 8 million to 9 million tins of older dated infant formula, and swap it for its customers and distributors with newer stock. “Their strategy seems to me entirely sensible and logical, but it’s hard to assess whether it will be successful,” Williams said.
Market close: Fonterra emerges from trading halt with big dip
7 May, 2021 05:38 AM
4 minutes to read
Fonterra Shareholders Fund fell 30c or 6.52 per cent to $4.30. Photo / File
NZ Herald
By: Graham Skellern
A quiet New Zealand sharemarket caught the end-of-week Fridayitis and closed with a small loss on light trading – and a2 Milk took another dip. The S&P/NZX 50 Index was down 21.74 points or 0.17 per cent to 12,729.92, after trading in a narrow range with an intraday low of 12,699.67. There were 63 gainers and 68 decliners over the whole market of 186 stocks on volume of 36.41 million share transactions worth $124.39 million.
Matt Goodson, managing director of Salt Funds Management, said it was a fairly directionless day. There were some flows into (Smartshares) passive investment funds earlier in the week and now it s pretty quiet.
Market close: NZ sharemarket treading water as it awaits company results
30 Apr, 2021 05:54 AM
4 minutes to read
The NZ sharemarket edged ahead to end the week. Photo / File
NZ Herald
By: Graham Skellern
The New Zealand sharemarket ended the week on a quiet note and a small gain, with one fund managing saying it is treading water awaiting the latest mini-reporting season. The S&P/NZX 50 Index edged ahead 15.92 points or 0.13 per cent to 12,731.13, after falling to an intraday low of 12,661.10. There were 66 gainers and 73 decliners over the whole market, with 56.54 million shares worth $192.11 million changing hands.
Matt Goodson, managing director of Salt Funds Management, said the market has been very quiet. One concern is that New Zealand could see high inflation measurements here and overseas over the next several months, with price increases all over the place.
Market close: Energy stocks drag down NZ sharemarket
20 Apr, 2021 05:38 AM
4 minutes to read
By: Graham Skellern
The New Zealand sharemarket gave up some of its recent hard-earned gains, led down by the energy stocks hit by dry weather in both the North and South Islands. The S&P/NZX 50 Index fell 89.28 points or 0.7 per cent to 12,678.55, and the index did stage a late recovery after reaching an intraday low of 12,574.25. There were 51 gainers and 94 decliners over the whole market, with 52.36 million shares worth $197.88 million changing hands.
Matt Goodson, managing director of Salt Funds Management, said the question is, do markets keep on running? The corporate earnings outlook is reasonable without being outstanding, and it depends on whether central banks will maintain their present monetary policy with inflation starting to creep in.