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NZ stocks extend gains as a2 Milk rallies, Australia flat

Published 17/02/2016, 12:15 pm
© Reuters.  NZ stocks extend gains as a2 Milk rallies, Australia flat
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WELLINGTON/SYDNEY, Feb 17 (Reuters) - Australian shares ran out of puff on Wednesday following a two-day rally, but New Zealand eked out a third session of gains as solid profits whipped a2 Milk Company's stock price into a froth.

Australia's S&P/ASX 200 index .AXJO was a touch lower at 4,909.90 by 1257 GMT, taking a breather after amassing around 3 percent over the past two days.

In contrast, New Zealand's benchmark S&P/NZX 50 index .NZ50 climbed 0.34 percent, or 20.48 points, to 6,095.85, having earlier risen as much as 1.0 percent to a one-week week.

a2 Milk Company ATM.NZ was the star performer, shooting up more than 20 percent at one stage.

Investors cheered after the company posted first half net profit of NZ$10.1 million ($6.6 million), thanks to strong demand for its infant formula product, a dramatic improvement from NZ$0.1 million in the prior year.

"It was a very solid result and they upgraded their guidance going forward. They are doing very nicely," said Adrian Vance, investment advisor for Forsyth Barr.

Shares in a2 Milk have since come off the highs and were up 5.9 percent, a magnitude that was more in line with their Australia-listed counterparts A2M.AX .

"People were obviously a little over-enthusiastic in the first few hours in New Zealand and since Australia opened there has been quite a bit of profit taking at these higher levels," Vance added.

Australia and New Zealand Banking Group ANZ.AX received a less enthusiastic response from the market after reporting a 4 percent rise in first quarter unaudited cash profit. shares drifted in and out of negative territory and were last up 0.7 percent.

Investors were clearly unimpressed with Woodside Petroleum WPL.AX , which posted a 99-percent plunge in annual net profit. Shares in the oil and gas company slid nearly 6.0 percent. helping sentiment in the energy sector was renewed weakness in oil prices overnight. more individual stocks activity click on STXBZ ($1 = 1.5228 New Zealand dollars)

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