6 Aug 2013

Fonterra share price rallies

3:09 pm on 6 August 2013

Shares in Fonterra are continuing their slow recovery from the crisis.

The Fonterra Shareholders Fund is slowly moving back to its level before the company revealed its contamination problems on Friday.

The shares fell from $7.14 to $6.50, before inching up late on Monday. On Tuesday, they resumed their climb to $7.03 cents.

Agricultural analyst Phil Journeaux said investors believe the firm can overcome its difficulties.

He said people acknowledge Fonterra has problems for now but will be able to overcome them in the long term.

Two other listed dairy companies, A2 and Synlait, appear to have escaped any fallout.

Earlier, Craigs Investment Partners head of wealth research Mark Lister said the reaction was extreme on Monday morning, but share prices and the currency recovered through the day.

The New Zealand dollar was trading at 78.10 US cents on Tuesday morning after falling as low as 76.99 US cents on Monday compared with about 78.85 late on Friday.