Synlait Milk and Mainfreight Suffer Setbacks, Dragging Down New Zealand Sharemarket

The New Zealand sharemarket closed lower on July 30, 2025, as Synlait Milk and Mainfreight both saw their shares fall sharply following disappointing updates. The S&P/NZX 50 Index ended the day down 0.62% or 80.44 points, closing at 12,855.97. A total of 31.1 million shares changed hands, valued at $122.12 million.

The S&P/NZX 20 index closed at 7,537.53, down 0.67%, while the S&P/NZX 10 index ended at 12,600.15, down 0.73%. Of the 133 companies on the main board, 57 saw gains, while 76 experienced declines.

Synlait Milk Faces Manufacturing Challenges

Synlait Milk’s shares fell 7.69% to $0.60 following the company’s disclosure of manufacturing “challenges” at its Dunsandel plant in Canterbury. The plant is a flagship operation for the dairy giant, and investors were quick to react with concern.

Despite Synlait’s reassurances that it expects a significant improvement in its underlying earnings for the current year and a reduction in its net loss, the market remained skeptical. Hamilton Hindin Greene investment adviser Jeremy Sullivan noted that the new CEO’s statements did little to calm investors, who are now voting with their feet.

Meanwhile, shares in a2 Milk, a major partner of Synlait, also dipped 1c to $8.80, reflecting broader concerns about potential supply chain delays.

Mainfreight’s Shareholders Disappointed

Mainfreight also faced a difficult day, with its share price falling 9.58% to $60.00 after the company reported a slow and disappointing start to its financial year. The shares saw a large volume of trading, with $8.86 million worth of shares changing hands.

Sullivan highlighted that the poor response from investors underscores the company’s struggles to meet expectations. He also pointed out that the government's recent move to allow Kiwibank to raise up to $500 million in capital was well-received, with the market likely to see a favorable outcome for the government.

Other Market Movements

Air New Zealand’s share price remained flat at 58c after announcing the appointment of Nikhil Ravishankar as its new chief executive. Meanwhile, Ryman Healthcare’s shares rose 1.22% to $2.49, following its annual shareholder meeting, where CEO Naomi James outlined key changes aimed at reviving the company.

International Market Outlook

In the United States, Wall Street stocks retreated as investors digested major merger announcements and US-China trade talks. The Dow Jones Industrial Average closed down 0.5%, while the S&P 500 and Nasdaq Composite also fell slightly.

Art Hogan of B. Riley Wealth Management noted that markets are adopting a “wait and see” attitude following the recent surge to record highs. Investors are now closely watching for major economic news and earnings reports from big tech companies later in the week.

As the market continues to evolve, investors are advised to remain vigilant and monitor developments in both domestic and international markets.