ASX weekly: Treasury Wine Estates sours investor taste buds

The Australian share market finished slightly lower last week, with the nation’s largest winemaker among the worst performers following serious allegations.

The benchmark S&P/ASX 200 edged 0.38% lower at 6,311 points, while the broader All Ordinaries index was down 0.53% at 6,393 points.

Investors offloaded their shares in Treasury Wine Estates – a company which owns brands such as Penfolds and Wolf Blass – following a critical presentation from a US fund manager who claimed the winemaker had falsified sales figures.

The fund manager pointed out a number of issues confronting the company and said the stocks were overvalued by more than 50%.

It was revealed that Treasury’s Chief Executive Michael Clarke had sold almost half of his available shares a week before this presentation, pocketing $6.9 million as a result.

The consumer staples sector, which Treasury Wine Estates is a part of, was down 2.19% over the week.

Material sector stocks – including Saracen Mineral Holdings, Northern Star Resources and Evolution Mining – finished in the green last week, taking out the top spots for share price gains.

Iron ore company Fortescue Metals added more than $6 million to its market value.

Cement manufacturer Adelaide Brighton saw the biggest share price fall last week, down 18.3%, following the release of a disappointing market update.

The company blamed its poor performance on a number of factors, including less demand for construction materials, increased competition and higher costs.

At an annual meeting on Friday, shareholders cast a protest vote against Adelaide Brighton’s earnings report, sparked by the company electing to pay out millions of dollars to former CEO Martin Brydon.

Two of Australia’s major banks – National Australia Bank and Commonwealth Bank – added more than $7 million and $6 million to their market values, respectively.

Macquarie Group’s shares fell 3.2% and it lost more than $1.4 billion in market value.