Mercury Energy was down 16c or 2.52 per cent to $6.18; Freightways recent surge slowed, falling 31c to $9.69; and Restaurant Brands fell 23c or 1.9 per cent to $11.89.
Telecommunications network operator Chorus has presented an operating and capital expenditure proposal for the period January 2022 to December 2024 to the Commerce Commission for regulatory approval. Chorus' share price increased 5c to $7.80.
The talk of the market was a2 Milk's trading halt, after it said it needed time to revise its previously issued half-year earnings guidance of $725m-$775m revenue, down from $805.3m in the previous corresponding period.
Jeremy Sullivan, investment advisor with Hamilton Hindin Greene, said a2 Milk was looking at a pending downgrade in earnings. The company reaffirmed its guidance at the annual meeting in mid-November but it was always optimistic.
"It's the first time in a long while they have gone into trading halt, so it's a big deal. It looks like their bold assumptions will not come to fruition. A large percentage of their revenue comes from the daigou sales channel which hasn't been fully functioning," said Sullivan.
All eyes will be on a2 Milk's trading after it makes its announcement to the market by Monday morning. A2 Milk is the third biggest local cap stock on the market and it last traded at $14.12.
Supplier Synlait Milk, 20 per cent owned by a2 Milk, also got caught up in the intrigue, falling 40c or 7.41 per cent to $5. Synlait told the market that a2 Milk is a strategic customer, and will assess the impact on its own company and provide a further update if necessary.
Produce companies Scales Corporation increased 9c or 1.89 per cent to $4.84, and Seeka continued its good run from $3.95 on December 7, closing at $4.58, up 13c or 2.92 per cent for the day. Sky City Entertainment climbed 7c or 2.15 per cent to $3.33, and water cooler supplier Just Life rose 5c or 7.04 per cent to 76c.
Z Energy and supplier New Zealand Refining Company are at loggerheads after they both issued notices of dispute. Z Energy fell 14c or 4.15 per cent to $3.23, and NZ Refining was unchanged at 57c.
Refining NZ has developed a simplification plan to operate the Marsden Point refinery at the lowest cost possible and run cash neutral. Z Energy argues the plan does not allow the customers to access the full capacity of the refinery and they shouldn't have to pay an additional top-up or fee floor payment. Refining NZ says the payment should be $70m a year higher.
Steel & Tube produced a positive update and its share price rose 4c or 4.94 per cent to 85c. Revenue for the first five months of the 2021 financial year is tracking close to the previous corresponding period and earnings before interest and tax is ahead.
