New Zealand shares rose for a second day in a lightly traded market ahead of the long Easter weekend, with local companies held for their reliable dividends finding favour among investors in an increasingly uncertain world.
The S&P/NZX 50 index advanced 51.07 points, or 0.4%, to 12,118.99, taking its weekly gain to 0.8%. Turnover was $115.1 million, with trading relatively quiet as some people got a jump on the four-day weekend.
Asian markets were broadly stronger despite the soft lead on Wall Street, where investors were spooked by the export controls on chipmaker Nvidia and US Federal Reserve chair Jerome Powell’s warning of the challenging scenario facing policymakers in the era of tariffs.
Australia’s S&P/ASX 200 index rose 0.6% in late trading, with mining companies buoyed by the surge in gold prices, while Japan’s Nikkei 225 index was up 1.4% after US President Donald Trump unexpectedly joined in preliminary trade talks with a Japanese trade delegation. Hong Kong’s Hang Seng advanced 1.5%.
“The market’s an interesting one – we’re up after a rugged start out of North America,” said Shane Solly, a portfolio manager at Harbour Asset Management. “It’s a very light liquidity day with low levels of participation in the market as we go into the holiday weekend.”
Companies typically held for their reliable dividends were among the day’s gainers after Forsyth Barr research noted the attraction of New Zealand’s heavy weighting towards defensive companies.
Solid returns
Commercial landlords were broadly stronger, with Precinct Properties NZ up 2.4% at $2.14, Kiwi Property Group rising 2.4% to 86 cents, Goodman Property Trust advancing 1.1% to $1.88 and Argosy Property climbing 2.5% to $1.01.
Spark New Zealand was the most heavily traded company on a volume of 8.7 million, rising 1.9% to $2.10. The telecommunications group yesterday announced a partnership with Infosys as part of its programme to cut costs.
Harbour’s Solly said Spark was among the firms named in the Forsyth Barr research and might be winning back confidence that it can deliver predictable earnings after last year’s surprises.
“Spark’s back in that list after a big drop in share price,” Solly said. “Yesterday’s Infosys announcement may be the start of a new trend of cost out.”
Serko led the benchmark index higher, rising 6.4% to $3.32, while Vista Group International gained 4.6% to $3.65. The tech sector has been hit hard by the heightened uncertainty of the US tariff regime.
Infratil paced gains on the benchmark index, rising 2.2% to $10.63, ending the week up 9.4% and snapping three weekly declines. The infrastructure investor hosted investors at one of its CDC data centre sites last week, and several executives have been buying shares on market.
Getting to the heart of things
Heartland Group Holdings rose for a second day, up 2.7% at 77 cents having climbed 7.1% on Wednesday after saying it was on track to meet annual earnings guidance.
Would-be miner Santana Minerals surged 8.9% to 61 cents, taking its weekly gain to 15% - its biggest since August – as gold prices hit a new record. New Talisman Gold Mines increased 2.5%, or 0.2 of a cent, to 8.3 cents.
Steel & Tube Holdings climbed 4.1% to 77 cents on an unusually large volume of 3.2 million. Almost all of that was in a single trade at 70 cents a share.
Tourism Holdings sank 11% to $1.43 after warning annual profit will fall “substantially” short of analyst expectations as the tariff war weighs on the rental campervan operator.
Air New Zealand was unchanged at 57.5 cents, having downgraded its earnings guidance yesterday due to a smaller compensation than previously anticipated from engine manufacturers.
Statistics New Zealand figures showed the annual pace of inflation picked up to 2.5% in the March quarter, but isn’t seen as deterring the Reserve Bank from continuing to lower the official cash rate.
The kiwi dollar traded at 59.10 US cents at 5pm in Auckland from 59.26 cents at 7am and 59.19 cents yesterday, and was little changed at 93.24 Australian cents from 93.19 cents.
Reporting by Paul McBeth. Image from Sebastian Staines on Unsplash.
