Market wrap: Pacific Edge was the star on a quieter day

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Pacific Edge will know by June 9 if its Cxbladder’s continue to be covered Medicare in the United States.

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Pacific Edge will know by June 9 if its Cxbladder’s continue to be covered Medicare in the United States.

The New Zealand sharemarket ended the week on a softer note across the board after big flows on the last day of the month.

The benchmark S&P/NZX 50 Index was down 0.3% or 35.226 points to 11,880.90 on Friday. On the broader market 75 stocks rose and 51 fell, with $62.3 million in shares traded.

Telco Spark was the biggest stock traded by value with $12.7m of shares changing hands and ending the day down 1.61% to $5.195.

David Price at Forsyth Barr said it was a softer day across the board after big flows on the last day of May.

Money was continuing to pour into power companies Mercury and Meridian, which had both had a strong run over the past three days, Price said. Mercury was up 8c to $6.63 and Meridian 4.5c to $5.495.

Broadband network company Chorus was up 11.5c to $8.50.5 after a dip on Thursday, and having ended May at $8.18, on an otherwise quieter day.

However, Cancer diagnostics company Pacifc Edge was the star of the day with the stock gaining 13.95% to 49c, after the company issued a statement to the market, clarified that the expected date for finalisation or withdrawal of the draft local coverage determination (LCD) covering the reimbursement of its Cxbladder tests by Medicare, the United States national health insurance provider was earlier than previously thought.

In its financial results on May 25 the company stated it understood that Medicare’s administrative contractor, Novitas must either finalise or withdraw the proposed LCD that had cast Cxbladder’s continued Medicare coverage into doubt, by July 28.

“In fact Novitas must make that decision by June 9, 12 months after the original date of posting, not 12 months after date of last revision as previously thought,” the company said.

“Pacific Edge continues to receive coverage for Cxbladder tests, has not been notified by Novitas of any intent to finalise or withdraw, and will update the market as soon as we are aware of additional information related to the LCD and the associated local coverage article LCA.

Synlait swappa bottles come off the production line at the milk factory.

Synlait Milk also announced its intention to divest its Dairyworks and Talbot Forest Cheese businesses.

Synlait chief executive Grant Watson said the company said it was undertaking a strategy and capital structure refresh, including an asset review.

To ensure greater focus and execution of Synlait’s overall business strategy, the company intended to evaluate the divestment of Dairyworks and Talbot Forest Cheese.

Synlait has engaged investment banking firm Jarden to advise on the divestment. Proceeds from the sale would be used to pay down debt.

Synlait’s share price was up 0.05c to $1.60.

Price said Asian markets had a strong run, with Hong Kong’s Heng Seng Index up nearly 4% on the back of a combination of what appeared to be the US debt ceiling being signed off and media coverage of one of the Federal Reserve governors talking about further interest rate rise being on pause.

“So all in all, there is sort of a sea of green that started in the US, and it has flowed though to pretty much every single market today,” he said.

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