New Zealand’s stock market joined a rally across Asia as investors continue to follow the ebbs and flows of US President Donald Trump’s tariff programme.
Blue-chip companies Infratil and Meridian Energy underpinned gains for the benchmark S&P/NZX 50 index, while beat-up retailer KMD Brands and rental campervan operator Tourism Holdings posted the biggest increases on the day.
The NZX50 rose 88.41 points, or 0.7%, to 12,107.54, lagging behind most markets across Asia Pacific as Australia’s S&P/ASX 200 was up 1.5% in late trading and Japan’s Nikkei 225 climbed 2%. S&P 500 futures are pointing to a 1% increase for Wall Street’s benchmark.
Investors continued to fret over Trump’s tariff programme, which carved out some consumer electronics such as smartphones and laptops on the punitive levies imposed on China, before dialling back that exemption as a temporary stay until an industry specific tariff is imposed.
“There’s stronger trading in Asia Pacific today on the back of the tariff relief,” said Peter McIntyre, an investment adviser at Craigs Investment Partners. “Markets are still perplexed on whether Trump will change his mind.”
The kiwi dollar traded at 58.55 US cents at 5pm in Auckland from 58.30 cents at 7am, up from 57.64 cents last week.
Infratil climbed 5% to $10.205 and Meridian advanced 2.9% to $5.945, underpinning gains for the benchmark index, while KMD led the top 50 index higher, up 6.3% at 34 cents.
Fly the friendly skies
Tourism Holdings rose 5.1% to $1.65, with the government announcing plans for a $13.5 million marketing campaign to attract foreign visitors to New Zealand. Government figures today showed a decline in short-term arrivals in February, due in part to the early Lunar New Year. Air New Zealand was unchanged at 58 cents and Auckland International Airport was unchanged at $8.09.
Retailers were broadly stronger despite Statistics New Zealand figures showing consumer spending on credit and debit cards stalled in March. Warehouse Group rose 2.5% to 82 cents, Hallenstein Glasson Holdings advanced 1% to $7.47, and Briscoe Group increased 1.7% to $4.30.
Michael Hill International was unchanged at 43 cents after founder Michael Hill took a leave of absence from the board to undergo cancer treatment. Andrea Slingsby has been appointed Hill’s alternate director.
Spark New Zealand was the most heavily traded stock on a volume of 2.5 million, gaining 1% to $2.07.
Serko posted the biggest decline on the NZX50, falling 4.8% to $3.21, while Mainfreight declined 2.6% to $58.44 and Vector slipped 2.2% to $4.03.
Being AI resumed trading from its suspension, falling 8.8% to 25.5 cents. The company’s new board, chaired by Michael Stiassny, last week updated shareholders on the state of play for the company, with a strategic review underway with urgency.
Reporting by Paul McBeth. Image from Raimond Klavins on Unsplash.